Annual Report 15 16 PDF

PABX : 8001450-54
Fax : 880-2-8001446
Email : renata@renata-ltd.com
Website : www.renata-ltd.com
Corporate Headquarters: Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216, Bangladesh
TRANSMITTAL LETTER
The Shareholders
Bangladesh Securities and Exchange Commission
Registrar of Joint Stock Companies & Firms
Dhaka Stock Exchange Ltd.
Sub: Annual Report for the period January 2015 to June 2016
Dear Sir/Madam (s)
We are pleased to enclose a copy of our Annual Report and Audited Accounts
including a Statement of Financial Position, a Statement of Comprehensive
Income, and notes and annexes as needed for the period January 2015 to June
2016. We hope you enjoy reviewing the Report and seeing how Renata has
grown as a company over the past year.
Yours sincerely,
Md. Jubayer Alam

Company Secretary
September 24, 2016
RENATA LIMITED
Corporate Headquarters: Plot # 1, Milk Vita Road
Section-7, Mirpur, Dhaka-1216
September 24, 2016

NOTICE
NOTICE is hereby given that the 43rd Annual General Meeting of Renata Limited will be held at Lakeshore
Hotel, La Vita Hall, Road-41, House-46, Gulshan-2, Dhaka-1212 on Saturday, November 19, 2016 at 11.00
a.m. to transact the following business :
AGENDA
Agenda-1: To receive, consider, and adopt the Audited Accounts of the Company for the year ended
December 31, 2015 and for the period of January-June 2016 together with Reports of the
Auditors and the Directors.
Agenda-2: To declare dividend for the year which ended on December 31, 2015 and for the period of
January-June 2016 (See note ii).
Agenda-3: To elect Directors, in accordance with the relevant provisions of the Articles of Association of
the Company.
Agenda-4: To re-appoint the Managing Director.
Agenda-5: To re-appoint the Independent Director.
Agenda-6: To appoint Auditors for the year 2016-2017 and to fix their remuneration.
By Order of the Board
(Md. Jubayer Alam)

Company Secretary
NOTES:
i) The ‘Record Date’ remain unchanged (May 22, 2016). The Shareowners whose name will appear in the
Share Register of the Company and in the Depository Register on that Date will be eligible to attend the
meeting and qualify for the Dividend to be declared at the AGM.
ii) The Directors have recommended cash dividend @ 85% i.e. Taka 8.50 per share of Taka10 each and stock
dividend @ 15% (bonus share) for the year ended December 31, 2015 and for the period of January-June 2016.
iii) A member entitled to attend and vote at the Annual General Meeting may appoint a proxy to attend and vote
on his/her behalf. The Proxy Form, duly completed, must be deposited at the Registered Office of the Company
at Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216 not later than 48 hours before the time fixed for
the Meeting.
iv) Members are requested to notify change of address, if any, to the Company. For BO A/C holders, the same
to be rectified through their respective Depository Participants.
v) Admission into the Meeting Room will be allowed on production of the “Attendance Slip” attached with the
Proxy Form.
1 Company Profile
2 Our Values
3 Mission and Vision
7 Chairman’s Statement
11 Board of Directors
16 Corporate Governance
17 Directors’ Report
31 Financial Highlights
32 Financial Trend
33 Statement of Value Addition
35 Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the period January 2015 to June 2016
36 Corporate Social Responsibility
38 Product Portfolio
Financial Statements of Renata Limited for the year ended December 31, 2015
51 Auditors’ Report
52 Statement of Financial Position
53 Statement of Profit or Loss and Other Comprehensive Income
54 Statement of Changes in Equity
55 Cash Flow Statement
56 Notes to the Financial Statements
Financial Statements of Renata Limited for the period from 01 January to 30 June 2016
Report and Financial Statements of Renata Agro Industries Limited for the year ended December 31, 2015
118 Statement of Profit or Loss and other Comprehensive Income
Report and Financial Statements of Renata Agro Industries Limited for the period from
01 January to 30 June 2016
136 Statement of Profit or Loss and other Comprehensive Income
Report and Financial Statements of Purnava Limited for the year ended December 31, 2015
156 Statement of Comprehensive Income
Report and Financial Statements of Purnava Limited for the period from 01 January to 30 June 2016
169 Statement of Comprehensive Income
Report and Financial Statements of Renata Oncology Limited for the year ended December 31, 2015
Report and Financial Statements of Renata Oncology Limited for the period from 01 January to 30 June 2016
Consolidated Financial Statements of Renata Limited and its Subsidiaries for the year ended December 31, 2015
Consolidated Financial Statements of Renata Limited and its Subsidiaries for the period from
01 January to 30 June 2016
271 Corporate Directory

272 Proxy Form
Year of Incorporation
1972 as Pfizer Laboratories (Bangladesh) Limited,
subsidiary of Pfizer Corporation, USA
Change of Name
1993 Renamed as Renata Limited after divestment of
shareholdings by Pfizer Corporation, USA
Field of Business
Manufacturing, Marketing & Distribution of Human Pharmaceuticals,
Animal Health Medicines, Nutritionals, and Vaccines
Contract Manufacturing
General products for UNICEF and SMC
MHRA Certificate
Medicines and Healthcare products Regulatory Agency, UK
has issued a Certificate of GMP Compliance of a Manufacturer
to Renata Limited for our Potent Products Facility at section 7, Mirpur, Dhaka
Marketing & Distribution Rights

• Evans Vanodine International (UK): Animal farm disinfectants
• Zinpro Corporation (USA)
• Biomin Holding GmbH (Austria): Animal nutritional products
• Bomac (New Zealand): Animal health products
• Novus (USA): Animal health products
• Indian Herbs Overseas
• Blue Seas Life Sciences
• Dongbu Farm Hannong Co. Ltd., Korea
• IZO Vaccines, Italy
Investment in Subsidiaries
• 99.99% Shareholding in Renata Agro Industries Limited
• 99.99% Shareholding in Purnava Limited
• 99.99% Shareholding in Renata Oncology Limited
1•renata annual report

Customer Focus
Customer satisfaction is the main
reason behind all our activities.
Integrity
We conform to the highest
ethical standards.
Social Responsibility
We make active efforts to improve
the welfare of our community.
Building Leaders
Renata cannot grow without
leadership in all spheres of our
activities. Therefore creating
leaders is a key priority.
The Corporate Family

We recognise that people are the
cornerstone of Renata’s success.
We are one big family where each
of us expects to be treated fairly
and with dignity.
•2
3•renata annual report
Vertex Chambers
•4
5 •renata annual report
Sarwar Ali, born in 1942 passed Matriculation and
ISC in 1957 and 1959 respectively with his name
featuring in all East Pakistan merit list. He
graduated from Dhaka Medical College in 1965.
Dr. Sarwar Ali is a freedom fighter. In 1971, he was

among three-member first delegation of
Bangladesh government in exile which was sent to
European countries for propagating Bangladesh
cause.
Between 1972 and 1987, Dr. Sarwar Ali was thrice

elected as Secretary General and twice as Vice
President of Bangladesh Medical Association
(BMA). He was councilor of International
Physicians for Prevention of Nuclear War
(IPPNW) that won Nobel prize in 1985 and Dr. Ali
was selected to ten-member delegation that
received the award at Oslo, Norway.
Dr. Sarwar Ali is the founder trustee of Liberation

War Museum. He became the founding chairman
in 2006 of International Coalition of Sites of
Conscience, the global organization of over 250
sites and museums where major human right
abuse took place.
Sarwar Ali joined largest music school of the

country, Chhayanot in 1968 and is its vice
president for the last two terms. He was elected
member of Dhaka University Senate and Vice
president UNAB and Sector Commander’s Forum.
Dr. Sarwar Ali was elected member of National

council of Bangladesh Diabetic Association and
currently Chairman, Board of Management,
BIRDEM General Hospital. He has been vice
chancellor’s nominee in governing body of Ibrahim
Medical College and Community Medical college.
Dr. Sarwar Ali joined Pfizer plant at Dhaka as part

time medical officer in 1968. After independence
he became Assistant Medical Director of Pfizer
Bangladesh and became Medical Director in
1990. After the company was renamed as Renata
Limited, he was appointed Managing Director of
the company in 1995. During the tenure of this
office, he was elected member of executive
committee Bangladesh Aushadh Shilpa Samity
and eventually became member of its advisory
committee. Dr. Sarwar Ali was elected president of
Bangladesh Employers’ Federation in 2001.
Dr. Ali retired from the office of MD in 2002 after

reaching 60 years of age. He has been
representing Sajida Foundation, major shareholder
of the company in the Board of Directors since the
inception of Renata Limited.
•6
Chairman’s Statement
JANUARY 2015-DECEMBER 2015
Figure No. 1
Welcome to the 43rd Annual General Meeting of Renata Limited. Given this is the
first Annual Report reflecting the statutory change in the fiscal year, we present the Daily Closing Price for Renata in 2015
Chairman's Statement for two time periods, viz., January 2015-December 2015 and (Adjusted for Bonus Shares)
January 2016-June 2016.
1625
At the outset, I would like to pay tribute to the memory of Mr. Syed H. Kabir, the
Founder Chairman of the Company. We are all aware of his ground breaking 1300
contributions in various business segments and social sectors of Bangladesh. May
future generations strive to live up to the high standards that he has set. The Board 975
of Directors is committed to retaining his legacy in terms of transparency and
compliance to regulatory requirements, while maintaining steady growth of the 650
Company.
325
Renata’s financial results were satisfactory in 2015. Net profit and net sales rose by
17% and 16%, respectively. The markets recognized our performance as Renata 0
stock held up well throughout the year despite impassivity in the Dhaka Stock
Exchange.
While growth of the pharmaceutical market was strong for the second consecutive Figure No. 2
year, a worrying development is that unlike in previous years, the top-tier companies Company Growth vs Market Growth
are no longer able to grow much faster than the market. Given the paucity of new
products, it perhaps should come as no surprise that company growth is aligning Competitor 1 Market
with market growth. Figure No. (2), which shows the evolution of growth relative to 32.50%
market for Renata and three leading companies, clearly demonstrates this point. 26.00%
We believe, however, that by continuing to raise field sales force productivity (Sales 19.50%
per medical representative), it is possible to resist the gravitational pull of the 13.00%
market. While our productivity in this area is the second highest in the Industry, there 6.50%
is scope to improve through changes in the structure of the field force. For example, 0.00%
in most countries it is common to create subgroups within the sales team to increase 2006 2008 2010 2012 2014 2016
focus on specific products. It is now the right time for Renata to deploy this strategy.
Therefore, starting from 2016, we created various subgroups within a team. The
idea is to reduce product-load per sales officer, which should allow each field-force Competitor 2 Market
37.50%
to increase focus on their respective product portfolios and operate more efficiently.
The "split" strategy described above is not new to Renata. We have had a speciality 25.00%
team for hormone products for quite a few years. This team and its strategy
contributed to Renata becoming the undisputed market-leader in hormone products. 12.50%
More generally, globalization is an effective way of ensuring long-term success in 0.00%

the pharmaceutical space. In this regard, Renata made commendable progress in
2015. Exports grew by 180%. A significant share of this growth came from Sri Lanka, -12.50%
Vietnam, Ethiopia, and Somalia. For the first time in the Company’s history, exports 2006 2009 2011 2014 2016
account for more than 5% of total sales – a step in the right direction.
I am also happy to note that we made good progress in obtaining institutional orders. Competitor 3 Market
In addition to UNICEF, we secured business from family planning organisations in 40.00%
Sri Lanka and Myanmar. Additionally, on account of a direct arrangement with the 32.00%
provincial government of Punjab, we exported a large consignment of micronutrient
powders to Pakistan. 24.00%
16.00%
Significant progress has also been made in entering highly regulated markets. We
8.00%
have begun filing products in the UK. In 2015, we filed three products, and we
expect to file another eight products in 2016. Thereafter, we hope to have regular 0.00%
2005 2008 2010 2013 2015 2018
filings of 5-10 products every year. Two of our factories, the Potent Product Facility
and the Rajendrapur General Facility, are now awaiting inspections from the UK
regulatory body, MHRA. Renata Market
40.00%
We have also begun developing a basket of products for the US market. Presently,
we are targeting oral contraceptives. We hope that some of the products developed 32.00%
for the UK can be adapted for the US market as well.
24.00%
I am pleased to report that through our Renata Oncology subsidiary, we have
successfully synthesized the Active Pharmaceutical Ingredient (API) for Sorafenib. 8.00%
Given this promising start in API, we are hoping to synthesize two more molecules
in 2016. Some of these products are patent-protected and strategic choices for 0.00%
taking advantage of TRIPS. 2005 2008 2010 2013 2015 2018

Our Animal Health business is now large enough to contribute Pharmaceutical: While the pharmaceutical market exhibited strong
significantly to the overall growth of the Company. To put it in growth during the first six months of this year, part of that growth may be
perspective, the total revenue from this Renata business segment attributed to overselling by some of the largest companies in the Industry.
equals that of the 13th largest pharmaceutical company in Such astigmatic techniques are not sustainable and it is doubtful whether
Bangladesh. Moreover, after many years, a rapidly expanding product this level of growth shall prevail during the latter half of the year.
portfolio is poised to significantly bolster prospects for Animal Health.
Instead of focusing on short-run sales, we opted for two approaches that
Finally, debt service costs are coming down significantly at Renata. are likely to increase our brand-equity over time. The first approach
For the last two years, investment has been kept below the Taka 100 entailed splitting the field-force into product-groups so that more emphasis
crore mark. We expect more of the same in 2016. Given the modest can be placed on our various brands. This approach was piloted early in
levels of investment, our free cash flow can be used to retire debt. By the year with promising results, and we therefore opted for scale-up of this
the end of 2016, long-term debt is likely to be down to negligible strategy.
levels.
The second approach has been particularly novel and entailed the use of
In essence, despite tightening in the domestic pharmaceutical market, technology to differentiate our brands. Since counterfeit drugs are
there are still plenty of ways Renata can maintain its growth becoming a source of concern, we placed unique codes on every strip of
momentum both in terms of turnover and earnings. Maxpro 20 mg tablets which can then be verified through SMS. This
technology has been warmly welcomed by customers. We are awaiting
I now take a brief look at our constituent businesses. approval of the Directorate General of Drug Administration (DGDA) for
Animal Health: The poultry industry rebounded after a four-year applying the same technology to Rolac tablets.
slump. This recovery strongly increased the demand for animal health Compared to the market growth rate of 17.8%, our pharmaceutical
products leading to market growth of 18%. Our animal health business grew by 18.2%.
business grew impressively at 33%, which was the highest rate of
growth registered by any of the top ten companies. Consequently, we On the downside, our export plans for the UK market has run into
comfortably maintained our long-standing position as market leader. unexpected problems. The UK regulatory body for medicinal products, viz.,
MHRA has deemed it unsafe to send their factory inspectors to
There are three reasons to be optimistic about the prospects of our Bangladesh due to the threat of terror. We believe that this concern of
animal health business: MHRA is unjustified and as such we have made representations not only
to the British High Commission in Dhaka, but also to British
Firstly, the product pipeline is rich. It is comprised of nutritional
parliamentarians. Given that the English cricket team is visiting
supplements, antibiotics, and vaccines.
Bangladesh soon, we hope that the MHRA shall revise its stance. In the
Secondly, the ban on Indian beef has resulted in cattle farms meantime, we have continued to develop and file products for UK and
emerging all over the country. Therefore, prospects for our large Europe.
animal product portfolio look good.
Animal Health: Our animal health business continues to grow at
And finally, Bangladesh has become a large producer of fish resulting break-neck speed. Compared to market growth of 18.3%, our growth was
in increased demand for aqua products. 33.6% -the highest in the Industry. There are three reasons for this
Assuming there is no disaster in the poultry industry, we expect a very achievement. First, unlike many of our competitors we remained focused
strong year for our animal health business. on brand-building shunning push-sales which invariably runs the risk of
collapse. Second, we introduced a service wing for farmers staffed by
Pharmaceutical: The Paradote ban was a major setback for our core Doctors of Veterinary Medicines (DVMs). This service has helped us to
business. We had been making decisive inroads in the Paracetamol increase customer-loyalty. Third, the introduction of two additional regional
market, so the somewhat unexpected restriction on this product was sales managers improved sales-force efficiency.
a shock. The first three months following the ban were particularly
difficult and undermined our growth. Nevertheless, our growth of 16% In terms of volume, Animal Health is no longer small. If growth continues
was not significantly different from the market growth of 15%. anywhere near the present trajectory then the existing manufacturing
facilities shall be insufficient to service product demand. We therefore
However, we eventually compensated for the loss of Paradote by should expect significant capital outlays in the near future.
rightly focusing on other brands. It is noteworthy, that the share of our
OTC portfolio continued to grow despite the ban thanks largely to the Contract-Manufacturing: This increasingly important business segment
growth of Maxpro. We also managed to retain our rank of 4th in the grew by 9% in the first six months of 2016. Oral Contraceptive Pills
market. (OCPs), Oral Rehydration Salt (ORS), and Micronutrient Powders (MNP)
constitute the products for third-party delivery. The tender for OCPs by the
Based on our Q4 2015 performance, we expect a strong showing in Government of Bangladesh was held in abeyance for technical reasons.
2016. Newer antibiotics, OTCs, and hormones are poised to be major We expect this tender to be floated in the next few months. We stand a
growth drivers. reasonable chance of securing significant business from this transaction.
Contract Manufacturing: While this business segment declined by
7%, a much larger decline had been budgeted for 2015 to reflect the Outlook for Fiscal Year 2016-17: Both pharmaceutical and animal health
slower expected uptake of products by partner organisations. Despite businesses are expected to grow well, albeit tempered by an expected
mild cyclicality, contract-manufacturing remains an important part of decline in contract-manufacturing. Overall, we expect fiscal year 2016-17
our core activities. to be good provided stable socioeconomic conditions continue in the
foreseeable future.
JANUARY 2016-JUNE 2016
The first six months of 2016 produced better than expected results.
Both net profit and net sales rose by 22%. Although business
confidence in general declined due to certain terror incidents, our core Dr. Sarwar Ali
businesses remained largely insulated from these unfortunate
developments. As such, we are hopeful that this robust performance Chairman
shall continue for the remainder of the year. Moreover, at this point, September 24, 2016
we see no reason to revise our long-run strategic plans.
•8
Dr. Sarwar Ali, Chairman
Current Responsibilities
Chairman, Board of Directors, Renata Limited
Trustee, Liberation War Museum
Vice President, Chhayanaut
Chairman, Board of Management, BIRDEM Hospital
Past Responsibilities
Director, Renata Limited
Managing Director, Renata Limited
Medical Director, Pfizer (Bangladesh) Limited
President Bangladesh Employers Federation
International Councilor of IPPNW
Secretary General, Bangladesh Medical Association
Member, Dhaka University Senate
Education
MBBS, Dhaka Medical College
Kaiser Kabir, CEO & Managing Director

CEO & Managing Director, Renata Limited
Chairman, Renata Agro Industries Limited
Chairman, Purnava Limited
Chairman, Renata Oncology Limited
Board Member, Sajida Foundation
Board Member, BRAC
Director, BRAC Bank Limited
Vice President, Bangladesh Association of Pharmaceutical Industries
Board of Directors, GAIN
Member, Finance & Audit Committee
Member, Nominations Committee
Managing Director, BRAC-Renata Agro Industries Limited
Executive Director, Sajida Foundation
National Macroeconomist, Financial Sector Reform Project
Consultant, The World Bank, RMB
Research Officer, Institute of Economics & Statistics, University of Oxford
Education
MPhil in Economics, University of Oxford, UK
Postgraduate Diploma in Economics with Distinction,
University of East Anglia, UK
Bachelor of Arts in Economics and International Relations,
Claremont McKenna College, USA

A. Hasanat Khan, Director
Director, System Engineering Ltd.
Senior Consultant, Eshna Consulting Team Ltd
MD, BOC Bangladesh Ltd
President, Foreign Investors Chamber of Commerce & Industries
Committee Member, MCCI
Committee Member, Employers Federation
Chief, Productivity Services Wing, ILO
President, Rotary Club of Dhaka
Engineering Consultant, IFC-SEDF
CEO, Consortium for Industrial & Engineering Services
Education
M.Sc. Tech (UK)
C. Eng. M. I. Mech. E. (UK)
Life Member ASME (USA)
Zahida Fizza Kabir, Director

Executive Director, Sajida Foundation
Director of Programs, Sajida Foundation
Senior Program Officer, Sajida Foundation
Education
Masters Degree in International and Intercultural Management,
School for International Training, Vermont, USA
Bachelor’s Degree in Social Work,
University of the Philippines
Post graduate diploma on “Organizational leadership”,
Said Business School, University of Oxford
•12
Sajeda Farisa Kabir, Director
Program Head, Human Rights and Legal Services Program, BRAC
Founding Partner, Vertex Chambers, Dhaka, Bangladesh
Counsel Barrister, Temple Court Chambers Dhaka Annexe, Dhaka,
Bangladesh
Senior Regional Manager, Human Rights and Legal Services Program,
BRAC
Education
Post Graduate Diploma in Professional Legal Skills, City University,
London, UK
LLB (Honours), Cardiff Law School, University of Wales, UK
Professional Qualifications
Barrister (of Lincoln’s Inn)
Advocate, Supreme Court of Bangladesh
Lawyer (New South Wales), Australia
Manzoor Hasan, OBE, Independent Director

Executive Director, South Asian Institute of Advanced Legal and
Human Rights Studies, BRAC University
Chair UNCAC Coalition, Berlin, Germany
Director, Institute of Governance Studies, BRAC University
Regional Director, Asia-Pacific, Transparency International, Germany
Executive Director, Transparency International Bangladesh
Barrister, Dr. Kamal Hossain and Associates, Bangladesh
Barrister, 6 King's Bench Walk, Temple, London, England
Education
The Honourable Society of Lincoln’s Inn, England
London School of Economics, England
Honours
Her Majesty Queen Elizabeth II awarded Manzoor Hasan
with the Officer of the Order of the British Empire (OBE) on 14th June,
2003 for the service given to Transparency International Bangladesh

Md. Iftikhar-Uz-Zaman, Director
Managing Director, Investment Corporation of Bangladesh
Chairman, ICB Capital Management Ltd.
Director of British American Tobacco Bangladesh Co. Ltd. (BATBC),
Linde Bangladesh Limited, GlaxoSmithKline Bangladesh Ltd. (GSK),
Bangladesh Krishi Gobeshona Endowment Trust (BKGET),
Credit Rating Agency of Bangladesh Ltd. (CRAB),
Credit Rating Information and Services Ltd. (CRISL),
Standard Bank Limited, National Tea Company Limited,
Apex Tanary Limited, Central Depository Bangladesh Ltd. (CDBL),
CAPM Venture Capital & Finance Ltd. (CVCFL) and some other.
Deputy Managing Director, Investment Corporation of Bangladesh
Deputy Managing Director, Janata Bank Ltd.
General Manager, Investment Corporation of Bangladesh
Education
B.A. (Honors), Statistics (University of Rajshahi)
M.A. Statistics (University of Rajshahi)
Tanya Tazeen Karim, Independent Director

Architect Partner, Tanya Karim NR Khan & Associates
Board Member: Bangladesh Womens’ Chamber of Commerce &
Industry(BWCCI)
Director: Vantage Engineering & Construction Ltd.
MD: Urban Bangla Ltd.
Visiting Lecturer: Adjunct Faculty,University of Asia Pacific.
Past Responsibilities & Achievements
EC Member: Women Architects, Engineers,Planners
Association(WAEPA)
Board Member & Member of Development Committee of Presidency
University Foundation.
Founder Member: UW2SDA (Urban Water, Wastelands Society &
Design Alliance), presently ISUS (Institute for Sustainable Urban
Studies)also attached to the ‘Swaraswati Program’ for exchange
program of Environmental Expertise among selected universities of
USA, India and Bangladesh.
Education
B. Arch from Bangladesh University of
Engineering & Technology(BUET) Management
Course for Women Entrepreneurs from IBA
•14
Md. Jubayer Alam, Company Secretary
Company Secretary, Renata Limited
Human Resources Manager, Renata Limited
Training Manager, Renata Limited
Regional Sales Manager, Novartis (BD) Limited
Education
LLB from Atish Dipankar University of Science and Technology
MBA (Major in HRM) from Stamford University
MBA (Major in Marketing) from Stamford University
Masters in Psychology from University of Dhaka
THE AUDIT COMMITTEE

Mr. Manzoor Hasan - Independent Director • Chairman, Audit Committee
Mr. Kaiser Kabir - CEO & Managing Director • Member
Mrs.Tanya Tazeen Karim - Independent Director • Member

General Manager, Pharmaceutical Sales
General Manager, Manufacturing
Head of Marketing, Pharmaceutical
Head of Animal Health
Heads of Quality Assurance
Head of International Regulatory Affairs
Head of Human Resources Division
Head of Projects
Head of International Business
Head of Finance
Head of Information Technology
•16
TO THE MEMBERS
The Directors of Renata Limited are pleased to present their Annual Report along with the Audited Financial Statements
of the Company for the period January 01, 2015 to June 30, 2016 (January-December 2015 and January-June 2016).
BUSINESS ACTIVITIES
Turnover during 2015 was Taka 12,880.9 million registering a growth of 15.9% over last year’s turnover of Taka 11,107.2
million. Profit after tax was Taka 2,008.0 million – a growth of 16.7%. Earnings per Share (EPS) stood at Taka 37.89
against Taka 32.31 of 2014.
During January-June, 2016 period turnover was Taka 7,318.10 million registering a growth of 22.0% over same period’s
turnover of Taka 5,998.22 million. Profit after tax was Taka 1,137.14 million – a growth of 22.2%. Earnings per Share
(EPS) stood at Taka 21.59 against Taka 17.60 of the same period of 2015.
NEW PHARMACEUTICAL PRODUCTS

Renata introduced 35 new formulations during the period January 01, 2015 to June 30, 2016
Sl. Brand Name Generic Division Developed by

1 Arbecin 1mL IV Injection Carbetocin Pharmaceutical Renata
2 Androcap 40mg Capsule Testosterone Undecanoate Pharmaceutical Renata
3 Calcin-O Tablet Calcium Orotate Pharmaceutical Renata
4 Flustar Dry Syrup 100mL(125mg/5mL) Flucloxacillin Sodium Pharmaceutical Renata
5 Gaba-P 25mg Capsule Pregabalin Pharmaceutical Renata
6 Gynova 2mg Tablet Micronized estradiol 2mg Pharmaceutical Renata
7 Mercazole 5mg Tablet Carbimazole BP Pharmaceutical Renata
8 Meropen 250mg IV Injection Meropenem Pharmaceutical Renata
9 Novelon lite Tablet Drospirenone 3mg+ethinylestradiol 0.02mg Pharmaceutical Renata
10 Orcef 400mg Capsule Cefixime Pharmaceutical Renata
11 Recox 120mg Tablet Etoricoxib Pharmaceutical Renata
14 Sofenib Tablet Sorafenib Pharmaceutical Renata
15 Tazopen 2.25gm IV Infusion Piperacillin Sodium BP + Tazobactam Sodium INN Pharmaceutical Renata
16 Tritin 100mg Tablet Trimebutine Maleate Pharmaceutical Renata
17 Valdipin-80 Tablet Valsartan + Amlodipine Pharmaceutical Renata
18 Valdipin-160 Tablet Valsartan + Amlodipine Pharmaceutical Renata
19 Profast Rabeprazole Pharmaceutical Renata
20 5X Ulipristal Pharmaceutical Renata
21 Bisoren Plus Bisoprolol+Hydrochlorothiazide Pharmaceutical Renata
22 Erloren Erlotinib Pharmaceutical Renata
23 Tyrokin Imatinib Pharmaceutical Renata
24 Odmon Montelukast Pharmaceutical Renata
25 Rena-CT Powder Colistin & Trimethoprim Animal Health Renata
26 Tilmisin Oral Solution Tilmicosin Animal Health Renata
27 Renazyme Cs Oral Solution Xylanase, Cellulase, Beta-glucanase, Animal Health Lumis, India
Amylase, Protease, Mannanase, Pectinase
28 Availa Zn-120 Powder Zinc (As Zinc amino acid Complex) Animal Health Zinpro,USA
29 Izovac Marek Bivalent + Herpes Turkey Virus of Animal Health IZO SRL a Socio Unico, Italy
Diluent Inj Marek’s Disease Strain FC 126, Rispens
30 Izovac Marek Hvt + Herpes Turkey Virus of Animal Health IZO SRL a Socio Unico, Italy
Diluent Inj Marek’s Disease Strain FC 126,
31 Izovac Nd-Eds-Ib-Ibd ND Virus: 50 PD50; EDS’76 virus: Animal Health IZO SRL a Socio Unico, Italy
(Vet) Inj 108 EID50,IBD Virus:106 EID 50 IB virus
M41: 107.5 EID 50 in oil emulsion
32 Levabon Aqua Powder Autolyzed Yeast Animal Health BIOMIN, Austria
33 Oxy-Ren Tab Sodium Carbonate Peroxyhydrate Animal Health Renata
34 Zeoren Granular Aluminium Sodium Silicate Animal Health Renata
35 Gasfree Aqua Powder Yucca Schidigera Animal Health India Herbs, India
•18
CAPITAL EXPENDITURE
The following capital expenditure made by the Company during January 01, 2015 to June 30, 2016 period:
Taka in millions
Jan-Jun 2016 Jan-Dec 2015
Freehold Land 20.96 10.81
Building 123.99 232.90
Plant and Machinery 314.41 563.87
Automobile 62.01 54.64
Office Equipment, Furniture & Fixtures and others 27.34 122.01
Total 548.71 984.23
The investments were funded from internally generated cash and bank loans.
DIVIDEND
While there is reasonable profit available for
distribution, the investment pipeline is also
Financial Results
The Directors take pleasure in reporting the following financial results of
rich. Hence the Directors deem it necessary to the Company for the period January 01, 2015 to June 30, 2016
retain adequate funds to finance the capital
expenditures for capacity building to sustain
the growth of the company. Jan-Jun 2016 Jan-Dec 2015 Jan-Dec 2014
TAKA TAKA TAKA
The Board of Directors is pleased to
recommend a cash dividend of Taka 8.50 per Profit before tax 1,887,697,925 2,731,512,333 2,330,922,942
ordinary share of Taka 10 each. This dividend Less: Provision for tax 744,345,402 724,870,869 620,060,417
will entail a payment of Taka 450,104,869. The Net Profit after tax 1,143,352,523 2,006,641,464 1,710,862,525
Board of Directors also recommend for Add/(Less) Other comprehensive income (6,214,491) 1,371,120 9,346,119
declaration of Stock Dividend (Bonus Share) Total Comprehensive income 1,137,138,032 2,008,012,584 1,720,208,644
in the ratio of one Bonus Share for every 6.666 Add; Unappropriated profit brought forward 7,875,241,470 6,414,818,511 5,182,093,709
shares held for which an amount of Taka Add; Depreciation of revaluation surplus 317,943 635,885 635,885
79,430,271 will have to be transferred to Less: Tax holiday reserve (Net) 315,027,439 (18,690,370) (46,840,445)
Share Capital Account. 9,327,724,884 8,404,776,610 6,856,097,793
CONTRIBUTION TO APPROPRIATION RECOMMENDED

Dividend proposed:
NATIONAL EXCHEQUER a) Cash dividend @ Taka per share 450,104,869 353,023,432
During January-December 2015 and b) Stock dividend (Bonus Share) in the
January-June 2016 period the Company paid ratio of bonus share for every
Taka 2,582 million and Taka 1,617.28 million Shares held 79,430,271 88,255,850
respectively to the National Exchequer in the - 529,535,140 441,279,282
form of Corporate Income Tax, Import Duties Balance of unappropriated profit
and Value Added Tax (VAT). carried Forward 9,327,724,884 7,875,241,470 6,414,818,511
9,327,724,884 8,404,776,610 6,856,097,793
DIRECTORS
The vacancy caused due to death of Mr. S. H.
Kabir was filled by Mrs. Sajeda Farisa Kabir
and the vacancy caused due to change of Mr. AUDITORS
Md. Fayekuzzaman was filled by Mr. Md. The Company’s Auditor Messrs Hoda Vasi Chowdhury & Co., Chartered
Iftikhar-Uz-Zaman, Managing Director by Accountants retire at the 43rd Annual General Meeting. As per order of
Investment Corporation of Bangladesh. Bangladesh Securities and Exchange Commission the issuer Company
shall not appoint any firm of chartered accountants as its statutory auditors
According to the provisions of Article 105 of the for a consecutive period exceeding three years. As such they are not
Articles of Association of the Company, Mrs. eligible for reappointment. Therefore the Board of Directors is pleased to
Sajeda Farisa Kabir and Mr. Md. recommend Messrs S. F. Ahmed & Co., Chartered Accountants as Auditor
Iftikhar-Uz-Zaman, retires at the 43rd Annual of the Company for the year 2016-17 and fix their remuneration.
General Meeting and being eligible offers
themselves for re-election.
The Directors retiring by rotation under Articles
CONSOLIDATION OF ACCOUNTS
The Company is consistently following the Code of International Accounting
109, 115 and 116 of the Articles of Association Standard as adopted by the Institute of Chartered Accountants of
of the Company Dr. Sarwar Ali and Mrs. Tanya Bangladesh. According to Bangladesh Accounting Standard-27, (BAS-27)
Tazeen Karim who, being eligible, offer the Company has presented all the relevant consolidated financial
themselves for re-election. statements with those of its subsidiaries.

ADDITIONAL STATEMENT 9. Mr. Manzoor Hasan
Independent Director
6 times
The Directors are pleased to make the following
additional statements in respect of the Report prepared 10. Mrs. Tanya Tanzeen Karim 7 times
under section 184 of the Companies Act 1994. Independent Director
In our opinion, k) The pattern of Shareholding
a) The financial statements prepared by the (i) Parent/ Subsidiary / Associated companies:
management for the period January 01, 2015 to The Shareholding information as on 30th June 2016
June 30, 2016 give a true and fair view of the and other related information are set out in note- 7.
state of company about the results of its
operations, cash flows and changes in equity. (ii) Directors Name No. of Shares
Mr. Syed Humayun Kabir 23,104
b) Proper books of accounts have been maintained Dr. Sarwar Ali 2,928
by the company as required by applicable Laws, Mr. Syed S. Kaiser Kabir 55,341
Rules and Standard. Mrs. Zahida Fizza Kabir 7,687
c) Appropriate accounting policies have been Mrs. Sajeda Farisa Kabir -
consistently applied in preparation of the financial Mr. Md. Fayekuzzaman -
statements and that accounting estimates are Mr. A. Hasanat Khan -
based on reasonable and prudent judgments. Mr.Md.Iftikhar-Uz-Zaman -
Mr. Manzoor Hasan -
d) In preparation of the financial statement, the
Mrs. Tanya Tanzeen Karim -
International Accounting Standard, as applicable
in Bangladesh has been followed and there has (iii) Company Secretary
been no departure from the policies. Mr. Jubayer Alam 640
e) The system of internal control and internal check (iv) Chief Financial Officer (CFO)
are in effect and monitored properly. Mr. Khokan Chandra Das -
f) The company has sound and strong operational (v) Head of Internal Audit
strengths and ability to continue as a going Mr. ATM Muniruzzaman 125
concern. As such, there is no doubt of its (vi) Executives:
continuity. Mr. Khalil Musaddeq -
g) There is no significant deviation from last year in Dr. Sayma Ali 4,970
operating results. Mr. Monowarul Islam -
Mr. Sirajul Hoque 1,900
h) The key operating and financial data for
Mr. S.M. Anisur Rahman -
preceding five years have been shown in the
Financial Highlights. (vii) Shareholders holding 10% or more voting
interest:
i) The Directors, have recommended a dividend of
Sajida Foundation 27,006,065
TK.8.50 per share of TK. 10 each and Stock
Business Research International Corp. Inc. 11,535,451
dividend (bonus share) in the ratio of one share
for every 6.666 shares are held.
STATUS OF COMPLIANCE
j) During the period January 01, 2015 to June 30, Status of compliance as stated in BSEC order dated
2016 eight Board Meeting were held and the 7th August 2012 is shown in Annexure-III.
attendance by each Director are given below:
1. Mr. Syed Humayun Kabir (up to 07.07.15) 2 times PERSONNEL
Chairman of the Board The Directors record their appreciation for the
contribution made by the employees for their efforts.
2. Dr. Sarwar Ali (Chairman from 10.09.15) 8 times
Director/Chairman ACKNOWLEDGEMENT
3. Mr. Syed S. Kaiser Kabir 7 times The Board wishes to thank the Shareholders, Officials
Managing Director of the Drug Administration and other Government
officials, Doctors, Chemists, Medical Institutions,
4. Mrs. Zahida Fizza Kabir 5 times Bankers, the Securities and Exchange Commission,
Director the Dhaka Stock Exchange Limited and all our
5. Mrs. Sajeda Farisa Kabir (from 09.08.15) 4 times well-wishers for their continued support.
Director
On behalf of the Board of Directors
6. Mr. Md. Fayekuzzaman(up to 13.02.16) 4 times
Director
7. Mr. A. Hasanat Khan 8 times
Director Dr. Sarwar Ali
8. Mr. Md. Iftikhar-Uz-Zaman (from13.02.16)1 time Chairman
Director September 24, 2016
•20
•22
Status of compliance with the conditions imposed
by the BSEC’s Notification on SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August 2012
issued under section 2CC of the Securities and Exchange Ordinance 1969 on Corporate Governance
(Report under Condition No. 7.00)
Compliance Status
Condition Not Remarks
Title Complied Complied (if any)
No.
1.1 Board Size: The number of the Board members of the company shall √
not be less than 5 (five) and more than 20 (twenty).
1.2 (i) Independent Directors: At least one fifth (1/5) of the total number of √
Directors in the company’s Board shall be Independent Directors.
1.2 (ii) a) Independent Director does not hold any share or holds less than 1% √
shares of the total paid-up capital.
1.2 (ii) b) Independent Director or his family members are not connected with √
the company's any sponsor or Director or Shareholder who holds 1%
or more shares.
1.2 (ii) c) Does not have any other relationship, whether pecuniary or other- √
wise, with the company or its subsidiary/associated companies.
1.2 (ii) d) Independent Director is not a member, Director or officer of any √

Stock Exchange.
1.2 (ii) e) Independent Director is not a shareholder, Director or officer of any √

member of Stock Exchange or an intermediary of the capital market.
1.2 (ii) f) Independent Director is not a partner or an executive or was not a √

partner or an executive during the preceding 3 (three) years of any
statutory audit firm.
1.2 (ii) g) Independent Director shall not be an Independent Director in more √

than 3 (three) listed companies.
1.2 (ii) h) Independent Director has not been convicted by a court of compe- √
tent jurisdiction as a defaulter in payment of any loan to a bank or a
Non-Bank Financial Institution (NBFI).
1.2 (ii) i) Independent Director has not been convicted for a criminal offence √
involving moral turpitude.
1.2 (iii) The Independent Director(s) shall be appointed by the Board of √

Directors and approved by the shareholders in the AGM.
1.2 (iv) The Post of Independent Director(s) cannot remain vacant for more √
than 90 (ninety) days.
1.2 (v) The Board shall lay down a code of conduct of all Board members √
and annual compliance of the code to be recorded.

Compliance Status
No.
1.2 (vi) The tenure of office of an Independent Director shall be for a period √
of 3 (three) years, which may be extended for 1 (one) term only.
1.3 (i) Independent Director shall be a knowledgeable individual with √

integrity who is able to ensure compliance with financial, regulatory
and corporate laws and can make meaningful contribution to
business.
1.3 (ii) Independent Director should be a Business Leader/ Corporate √

Leader/ Bureaucrat/ University Teacher with Economics or Business
Studies or Law background/ Professionals like Chartered Accoun-
tants, Cost & Management Accountants, and Chartered Secretaries.
The Independent Director must have at least 12 (twelve) years of
corporate management/ professional experiences.
1.3 (iii) In special cases the above qualifications may be relaxed subject to No such
prior approval of the Commission. case
1.4 Chairman and CEO shall be filled by different individuals. Chairman √

shall be elected from among the Directors. The Board of Directors
shall clearly define respective roles and responsibilities of the
Chairman and the CEO.
1.5 The Directors’ Report to Shareholders on:
1.5 (i) Industry outlook and possible future developments in the industry. √
1.5 (ii) Segment-wise or product-wise performance. √
1.5 (iii) Risks and concerns. √
1.5 (iv) A discussion on Cost of Goods sold, Gross Profit Margin and Net √
Profit Margin.
No such
1.5 (v) Discussion on continuity of any Extra-Ordinary gain or loss. event
occurred
1.5 (vi) Basis for related party transactions- a statement of all related party √
transactions should be disclosed in the annual report.
1.5 (vii) Utilization of proceeds from public issues, rights issues and/or N/A
through any others instruments.
1.5 (viii) An explanation if the financial results deteriorate after the company
goes for Initial Public Offering (IPO), Repeat Public Offering (RPO), N/A
Rights Offer, Direct Listing, etc.
1.5 (ix) If significant variance occurs between Quarterly Financial perfor- No such
mance and Annual Financial Statements the management shall event
explain about the variance on their Annual Report. occurred
1.5 (x) Remuneration to Directors including Independent Directors . √

The financial statements prepared by the management of the issuer
1.5 (xi) company present fairly its state of affairs, the result of its operations, √
cash flows and changes in equity.
•24
Compliance Status
Title Complied Complied
No. (if any)
1.5 (xii) Proper books of account of the issuer company have been √
maintained.
1.5 (xiii) Appropriate accounting policies have been consistently applied in √

preparation of the financial statements and that the accounting
estimates are based on reasonable and prudent judgment.
1.5 (xiv) International Accounting Standards (IAS)/ Bangladesh Accounting √

Standards (BAS)/ International Financial Reporting Standards
(IFRS)/ Bangladesh Financial Reporting Standards (BFRS), as
applicable in Bangladesh, have been followed in preparation of the
financial statements and any departure there-from has been
adequately disclosed.
1.5 (xv) The system of internal control is sound in design and has been √
effectively implemented and monitored.
1.5 (xvi) There are no significant doubts upon the issuer company's ability to √
continue as a going concern. If the issuer company is not considered
to be a going concern, the fact along with reasons thereof should be
disclosed.
1.5 (xvii) Significant deviations from the last year’s operating results of the No
issuer company shall be highlighted and the reasons thereof should significant
be explained. deviation
1.5 (xviii) Key operating and financial data of at least preceding 5 (five) years √
shall be summarized.
1.5 (xix) No Declaration of Dividend. Dividend

Declared
1.5 (xx) The number of Board meetings held during the year and attendance √
by each Director shall be disclosed.
1.5(xxi) The pattern of shareholding shall be reported to disclose the

aggregate number of shares (along with name wise details where
stated below) held by:-
1.5 (xxi) a) Parent/Subsidiary/Associated Companies and other related parties √

(name wise details);
1.5 (xxi) b) Directors, Chief Executive Officer, Company Secretary, Chief √

Financial Officer, Head of Internal Audit and their spouses and minor
children (name wise details).
1.5 (xxi) c) Executives. √
1.5 (xxi) d) Shareholders holding ten percent (10%) or more voting interest in √
the company (name wise details).
1.5 (xxii) In case of the appointment/re-appointment of a Director the company √

shall disclose the following information to the shareholders:-a) a brief
resume of the Director;b) nature of his/her expertise in specific
functional areas;c) names of companies in which the person also
holds the Directorship and the membership of committees of the Board.

Compliance Status
Title Complied Complied
No. (if any)
2.1 The company shall appoint a Chief Financial Officer (CFO), a Head √
of Internal Audit (internal Control and Compliance) and a Company
Secretary (CS). The Board of Directors should clearly define
respective roles, responsibilities and duties of the CFO, the Head of
Internal Audit and the CS.
2.2 Attendance of CFO and the Company Secretary in the Board meeting. √
3 (i) The company shall have an Audit Committee as a sub-committee of √

the Board of Directors.
3 (ii) The Audit Committee shall assist the Board of Directors in ensuring √
that the financial statements reflect true and fair view of the state of
affairs of the company and in ensuring a good monitoring system
within the business.
3 (iii) The Audit Committee shall be responsible to the Board of Directors. √

The duties of the Audit Committee shall be clearly set forth in writing.
3.1 (i) The Audit Committee shall be composed of at least 3 (three) members. √
3.1 (ii) The Board of Directors shall appoint members of the Audit √
Committee who shall be Directors of the company and shall include
at least 1 (one)Independent Director.
3.1 (iii) All members of the Audit Committee should be “financially literate” √
and at least 1(one) member shall have accounting or related
financial management experience: The term Financially literate
means the ability to read and understand the financial statements i.e.
Balance Sheet, Income Statement and Cash Flow Statement and a
person will be considered to have accounting or related financial
management expertise if (s)he possesses professional qualification
or Accounting/finance graduate with at least 12 (twelve) years of
corporate management/ professional experiences.
No casual
3.1 (iv) Casual vacancy in Audit Committee shall be Filled by the Board. vacancy
occurred
3.1 (v) The company secretary shall act as the secretary of the Committee. √
3.1 (vi) The quorum of the Audit Committee (AC) meeting shall not constitute √
without at least 1 (one) Independent Director.
3.2 (i) The Board of Directors shall select 1 (one) member of the Audit √
Committee to be Chairman of the Audit Committee, who shall be an
Independent Director.
3.2 (ii) Chairman of the audit committee shall remain present in the Annual √
General Meeting.
3.3 (i) Role of the Audit Committee: Oversee the financial reporting process. √
3.3 (ii) Monitor choice of accounting policies and principles. √
3.3 (iii Monitor Internal Control Risk management process. √
•26
Compliance Status
No.
3.3 (iv) Oversee hiring and performance of external auditors. √
3.3 (v) Review along with the management, the annual financial statements √
before submission to the Board for approval.
3.3 (vi) Review along with the management, the quarterly and half yearly √
financial statements before submission to the Board for approval.
3.3 (vii) Review the adequacy of internal audit function. √
3.3 (viii) Review statement of significant related party transactions submitted √

by the management.
3.3 (ix) Review Management Letters/ Letter of Internal Control weakness √

issued by statutory auditors.
3.3 (x) When money is raised through Initial Public Offering (IPO)/Repeat
Public Offering (RPO)/Rights Issue the company shall disclose to the
Audit Committee about the uses/applications of funds by major
category (capital expenditure, sales and marketing expenses, N/A
working capital, etc), on a quarterly basis, as a part of their quarterly
declaration of financial results. Further, on an annual basis, the
company shall prepare a statement of funds utilized for the purposes
other than those stated in the offer document/ prospectus.
3.4.1 (i) The Audit Committee shall report on its activities to the Board of √
Directors.
No such
3.4.1 (ii) a) Report on conflicts of interests to the Board of Directors. event
occurred
3.4.1 (ii) b) Will report any suspected or presumed fraud or irregularity or mate- No such
rial defect in the internal control system to the Board. event
occurred
3.4.1 (ii) c) Will report any suspected infringement of laws, including securities No such
event
related laws, rules and regulations to the Board. occurred
3.4.1 (ii) d) Will report any other matter which shall be disclosed to the Board of No such
event
Directors immediately. occurred
3.4.2 Reporting to the Authorities: If the Audit Committee has reported to

the Board of Directors about anything which has material impact on
the financial condition and results of operation and has discussed
with the Board of Directors and the management that any
rectification is necessary and if the Audit Committee finds that such No such
rectification has been unreasonably ignored, the Audit Committee event
occurred
shall report such finding to the Commission, upon reporting of such
matters to the Board of Directors for three times or completion of a
period of 6 (six) months from the date of first reporting to the Board
of Directors, whichever is earlier.
3.5 Reporting to the Shareholders and General Investors: Report on

activities carried out by the Audit Committee, including any report
made to the Board of Directors under condition 3.4.1 (ii) above √
during the year, shall be signed by the Chairman of the Audit
Committee and disclosed in the annual report of the issuer company.

Compliance Status
No.
4 (i) Non-engagement of external/statutory auditors in appraisal or √

valuation services or fairness opinions.
4 (ii) Non-engagement of external/statutory auditors in financial informa- √

tion systems design and implementation.
4 (iii) Non-engagement of external/statutory auditors in Book-keeping or other √

services related to the accounting records or financial statements.
4 (iv) Non-engagement of external/statutory auditors in Broker-dealer services. √
4 (v) Non-engagement of external/statutory auditors in Actuarial services. √
4 (vi) Non-engagement of external/statutory auditors in Internal audit services. √
4 (vii) Non-engagement of external/statutory auditors in any other service √

that the Audit Committee determines.
4 (viii) No partner or employees of the external audit firms shall possess √

any share of the company they audit at least during the tenure of
their audit assignment of that company.
4 (ix) Non-engagement of Auditor in audit/certification services on √

compliance of corporate governance as required under clause (i) of
condition no. 7.
5 (i) Provisions relating to the composition of the Board of Directors of the √

holding company shall be made applicable to the composition of the
Board of Directors of the subsidiary company.
5 (ii) At least 1 (one) Independent Director on the Board of Directors of the √

holding company shall be a Director on the Board of Directors of the
subsidiary company.
5 (iii) The minutes of the Board meeting of the subsidiary company shall be √
placed for review at the following Board meeting of the holding company.
5 (iv) The minutes of the respective Board meeting of the holding company √
shall state that they have reviewed the affairs of the subsidiary
company also.
5 (v) The Audit Committee of the holding company shall also review the √
financial statements, in particular the investments made by the
subsidiary company
6 (i) a) The CEO and CFO will certify to the Board that they have reveiwed √
the financial statements and believe that these statements do not
contain any materially untrue statement or omit any material fact or
contain statements that might be misleading.
6 (i) b) The CEO and CFO will certify to the Board that they have reveiwed √
the financial statements and believe that these statements together
present a true and fair view of the company’s affairs and are in
compliance with existing accounting standards and applicable laws.
•28
Compliance Status
No.
6 (ii) There are, to the best of knowledge and belief, no transactions No such
entered into by the company during the year which are fraudulent, case
illegal or violation of the company’s code of conduct. occurred
The company shall obtain a certificate from a Professional

7 (i) Accountant/ Secretary (Chartered Accountant/ Cost & Management
Accountant/ Chartered Secretary) regarding compliance of condi- √
tions of Corporate Governance Guidelines of the Commission and
shall send the same to the shareholders along with the Annual
Report on a yearly basis.
7 (ii) The Directors of the company shall state, in accordance with the
Annexure attached, in the Directors' report whether the company has √
complied with these conditions.

•30
RENATA LIMITED FINANCIAL HIGHLIGHTS
Figures in Taka (Thousands)
Particulars 2016 (6 months) 2015 2014 2013 2012 2011
SUMMARY BALANCE SHEET
Shareholder's Equity
Share Capital 529,535 529,535 441,279 353,023 282,419 225,935
Proposed stock dividend - 79,430 88,256 88,256 70,605 56,484
Proposed cash dividend - 450,105 353,023 264,767 169,451 135,561
Revaluation surplus 156,282 156,520 156,999 157,477 157,956 158,434
Tax holiday reserve - 315,027 296,337 249,497 206,609 131,444
Unappropriated Profit 9,857,260 7,875,242 6,414,819 5,182,094 4,183,440 3,250,750
Shareholder's Fund 10,543,077 9,405,859 7,750,713 6,295,114 5,070,480 3,958,608
Long term & deferred liabilities 1,196,986 1,084,703 1,528,677 1,153,678 1,805,741 347,143
Total 11,740,063 10,490,562 9,279,390 7,448,792 6,876,221 4,305,751
Application of Funds
Property, plant and equipment - WDV 9,672,963 9,419,128 8,964,172 8,374,267 6,330,831 5,153,072
Investment & Non-current assets 251,263 235,464 233,027 199,433 112,026 74,404
Current Assets 6,836,121 6,483,183 5,296,370 4,208,713 3,310,221 2,464,125
Current Liabilities (5,020,284) (5,647,213) (5,214,179) (5,333,621) (2,876,857) (3,385,850)
Total 11,740,063 10,490,562 9,279,390 7,448,792 6,876,221 4,305,751
FINANCIAL RESULTS - - - - -
Turnover (Gross) 8,394,975 14,735,200 12,674,236 10,034,450 8,780,774 7,432,233
Turnover (Net) 7,318,104 12,880,957 11,107,281 8,757,406 7,671,572 6,519,639
Gross Profit 3,779,587 6,545,154 5,688,310 4,670,630 4,051,959 3,420,283
EBITDA 2,285,037 3,542,645 3,200,601 3,146,433 2,379,956 1,886,177
Profit before taxation 1,887,698 2,731,512 2,330,923 1,885,359 1,721,978 1,438,837
Profit after taxation 1,143,353 2,006,641 1,710,863 1,390,164 1,247,528 1,087,719
Total comprehensive income 1,137,138 2,008,012 1,720,209 1,393,928 1,247,275 1,090,634
Dividend - 529,535 441,279 353,023 240,056 192,045
FINANCIAL PERFORMANCE
Number of shares 52,953,514 52,953,514 44,127,929 35,302,343 28,241,875 22,593,500
Earning per share (Taka) 21.59 37.89 32.31 26.25 23.56 20.54
Dividend per share (Taka) - 10.00 10.00 10.00 8.50 8.50
Dividend payout % - 26.39 25.79 25.39 24.05 17.66
Effective Dividend Rate % - 0.81 0.85 0.92 0.77 0.71
Price Earning ratio - PER 54.89 32.54 30.46 27.50 31.39 25.03
Market price per share on 31 December 1,185.20 1,233.00 984.00 722.00 739.50 1,205.00
Price/Equity Ratio (Times) 118.52 123.30 98.40 72.20 73.95 120.50
Return on Shareholder's Fund % 10.84 21.33 22.07 22.08 24.60 27.48
Current Ratio - (Times) 1.36 1.15 1.02 0.79 1.15 0.73
Net operating cash flow per share (Taka) 27.17 37.60 38.90 20.77 24.64 20.40
Net asset value per share (Taka) 199.10 177.62 175.64 142.66 114.90 89.71
Number of employees 5,965 5,473 5,002 4,334 3,902 3,393

TAKA (MILLIONS)
12881.0
15000 8000
6545.2
11107.3
7000
5688.3
12000
6000
4670.6
8757.4
7671.5
4051.9
7318.1 5000
3779.6
9000
6519.6
3420.3
4000
6000
3000
2000
3000
1000
0 0
2011 2012 2013 2014 2015 2016(6 months) 2011 2012 2013 2014 2015 2016(6 months)
TURNOVER (NET) GROSS PROFIT
2500 600
529.5
2006.6
441.3
500
1710.9
2000
353.0
1390.1
400
1247.5
1500
1143.4
1087.7
240.0
300
192.0
1000
200
500
100
0 0
2011 2012 2013 2014 2015 2016(6 months) 2011 2012 2013 2014 2015-16(18 months)
NET PROFIT DIVIDEND
•32
January 2015 to June 2016
2015 2014
A. January to December 2015 Taka % Taka %
Turnover and other income 14,748,108,031 12,691,272,824
Less: Materials cost & Expenses 7,794,984,211 6,909,479,596
Value Added 6,953,123,820 5,781,793,228
Application:
Salaries and benefits paid to employees 1,945,734,696 28.0% 1,345,195,671 23.3%
Duties, VAT and Tax paid to Government Exchequer 2,582,317,277 37.1% 2,145,717,670 37.1%
Interest paid to Lenders 281,854,767 4.1% 463,471,214 8.0%
Contribution to WPPF 136,575,616 2.0% 116,546,147 2.0%
Tax holiday reserve (net) 18,690,370 0.3% 46,840,445 0.8%
Dividend to Shareholders 529,535,140 7.6% 441,279,290 7.6%
Retained by the Company 1,458,415,954 21.0% 1,222,742,791 21.1%
Total 6,953,123,820 100.0 5,781,793,228 100.0
Salaries and benefits paid to Employees Tax holiday reserve

Duties, VAT and Tax paid to Government Exchequer Dividend to Shareholders
Interest paid to Lenders Retained by the Company
Contribution to WPPF
28.0% 23.3%
37.1% 37.1%
4.1% 8.0%
2.0% 2.0%
0.3% 0.8%
7.6%
7.6%
21.0%
21.1%
2015 2014
2016 (6 months) 2015 (6 months)
B. January to June 2016 Taka % Taka %
Turnover and other income 8,394,974,752 6,875,846,764
Less: Materials cost & Expenses 4,584,120,640 3,691,998,253
Value Added 3,810,854,112 3,183,848,511
Application:
Salaries and benefits paid to employees 852,341,466 22.4% 769,478,386 24.2%
Duties, VAT and Tax paid to Government Exchequer 1,617,279,440 42.4% 1,291,158,638 40.6%
Interest paid to Lenders 103,495,788 2.7% 120,313,872 3.8%
Contribution to WPPF 94,384,895 2.5% 70,817,926 2.2%
Tax holiday reserve (net) - 0.0% 0.0%
Dividend to Shareholders - 0.0% 0.0%
Retained by the Company 1,143,352,523 30.0% 932,079,689 29.3%
Total 3,810,854,112 100.0 3,183,848,511 100%
Salaries and benefits paid to Employees Contribution to WPPF

Duties, VAT and Tax paid to Government Exchequer Retained by the Company
Interest paid to Lenders
22.4% 24.2%
42.4% 40.6%
2.7% 3.8%
2.5% 2.2%
30.0% 29.3%
2016 (6 months) 2015 (6 months)

•34
At Renata, corporate social responsibility
means caring for our employees, assisting
SUPPORT TO CHARITABLE
disadvantaged members of our society, and ORGANIZATIONS
building a sustainable community and JAAGO Foundation is a non-profit organization that
environment. Details on our various initiatives works to provide education to children from socially and
can be found below. economically disadvantaged backgrounds. Various
support functions work to ensure the sustainable growth
HEALTHCARE FOR of their core schooling program as well contribute to
improved livelihoods within affected communities.
EMPLOYEES AND
THEIR FAMILIES Expenditure during January 2015 to June 2016 period
Taka 300,000
The Renata health program covers all
permanent employees, their spouses, and The Poverty Fighter Foundation is a dedicated non-profit
children. This comprehensive program organization working to reduce poverty in Bangladesh.
includes surgery, hospitalization, as well as Renata supported their program aiming to empower
routine doctor visits. children through education.
Expenditure during January 2015 to June 2016 Expenditure during January 2015 to June 2016 period
period Taka 200,000
Type of care Taka
Bangladesh Infertility Management Centre (BIMC) is a
General 21,905,085 modern and international standard test tube baby and
Diagnostic 12,563,554 infertility treatment center has been working since 2005.
Gynecology 10,260,942 The Centre has taken initiative to develop a “Women
Others 5,506,620 Cancer Prevention and Research Centre” under it with a
Oncology 5,195,673 view to help in screening women for prevention of
Cardiovascular 5,079,780 different types of female cancers. It will also perform
Diabetes 3,793,682 research work and provide low cost services to under
Gastroentology 2,494,071 privileged women.
Accident 1,761,861
Expenditure during January 2015 to June 2016 period
Total 68,561,268 Taka 350,000
•36
Organization Taka
Jaago Foundation 300,000
Poverty Fighter Foundation 200,000
Bangladesh Infertility Management Centre 350,000
Total 850,000
As in the past, Renata Limited continues to fund treatment for Doctors diagnosed with cancer and other
life-threatening illnesses.
Expenditure during January 2015 to June 2016 period
Name Title/Organization Taka
Dr. Md. Mahbubur Rahman JessoreMedical College Hospital 1,000,000
Dr. Md. Alauddin MBBS 1,000,000
Dr. Raffatullah Rezwan BIRDEM General Hospital 300,000
Dr. Sharmin Siddiqua Islam Anwar Khan Modern Medical College 100,000
Dr. Md. Mizanul Haque Sarkari Karmachari Hospital, Dhaka 100,000
Dr. Nurul Islam MBBS 200,000
Total 2,700,000
SCHOLARSHIP FOR FINANCIAL ASSISTANCE TO

MERITORIOUS EX-EMPLOYEES AND THEIR
STUDENTS CHILDREN
HOPES (Helping Organization for Promising From time to time Renata Limited provided financial
and Energetic Students) runs a scholarship assistance to ex-employees and their children.
program for meritorious students. Renata
Limited sponsored students for studying Expenditure during January 2015 to June 2016 period
Medicine under the aegis of this programme. Taka 1,200,000
Expenditure during January 2015 to June 2016

period TOTAL CSR EXPENDITURE DURING JANUARY 2015
Taka 100,000 TO JUNE 2016
Taka 74,411,268
WOMEN’S 2.37% of net profit
EMPOWERMENT
In 2015, Wasfia Nazreen became the first
Bangladeshi to scale all the seven summits.
Earlier, Renata supported her expeditions to
Mount Elbrus and Everest. Carstenz Pyramid,
the final climb of her seven summits expedition
was also sponsored by us.
Expenditure during January 2015 to June 2016

period
Taka 1,000,000

•38
PHARMACEUTICAL PRODUCTS:
ANTIMICROBIALS:
Trade Name Generic Name Formulation Strength Pack Size

Alsporin Cephalexin Tablet 250mg 10x10’s
Alsporin Cephalexin Tablet 500mg 10x10’s
Amoxi IM/IV Amoxicillin Trihydrate Injectable 500mg Vial 500mg
Bactipront Co-Trimoxazole Tablet 480mg 10x10s
Bactipront Co-Trimoxazole Tablet 960mg 10x10s
Bactipront Co-Trimoxazole Oral Suspension 240mg/5ml Bottle 60ml
Bactamox Amoxicillin Trihydrate Tablet 250mg 10x10’s
Bactamox Amoxicillin Trihydrate Tablet 500mg 5x10’s
Bactamox Amoxicillin Trihydrate Ped. Drops 15ml Bottle 15ml
Bactamox Amoxicillin Trihydrate DPS 125mg/5ml Bottle 100ml
Bactamox IM/IV Amoxicillin Trihydrate Injectable 500mg 1’s
Cebuten Ceftibuten Dihydrate Capsule 400mg 2x4’s
Ceftizone IM Ceftriaxone Injectable 250mg Vial 250mg
Ceftizone IM Ceftriaxone Injectable 500mg Vial 500mg
Ceftizone IM Ceftriaxone Injectable 1gm Vial 1gm
Ceftizone IV Ceftriaxone Injectable 250mg Vial 250mg
Ceftizone IV Ceftriaxone Injectable 500mg Vial 500mg
Ceftizone IV Ceftriaxone Injectable 1gm Vial 1gm
Ceftizone IV Ceftriaxone Injectable 2gm Vial 2gm
Ceftipime Cefepime HCL Injectable 500mg Vial 500mg
Ceftipime Cefepime HCL Injectable 1gm Vial 1gm
Ceftipime Cefepime HCL Injectable 2gm Vial 2gm
Cefotax IM/IV Cefotaxime Sodium Injectable 250mg Vial 250mg
Cefotax IM/IV Cefotaxime Sodium Injectable 500mg Vial 500mg
Cefotax IM/IV Cefotaxime Sodium Injectable 1gm Vial 1gm
Cefazid IM/IV Ceftazidime Injectable 250mg Vial 250mg
Cefazid IM/IV Ceftazidime Injectable 500mg Vial 500mg
Cefazid IM/IV Ceftazidime Injectable 1gm Vial 1gm
Cloxicap Cloxacillin Capsule 500mg 10x10’s
Cloxisyrup Cloxacillin Suspension 125mg/5ml Bottle 100ml
Cloxiject IM/IV Cloxacillin Injectable 250mg Vial 250mg
Cloxiject IM/IV Cloxacillin Injectable 500mg Vial 500mg
Doxicap Doxycycline Hydrochloride Capsule 50mg 5x10’s
Doxicap Doxycycline Hydrochloride Capsule 100mg 10x10’s
Covan Vancomycin Injectable 500mg Vial 500mg
Covan Vancomycin Injectable 1g Vial 1g
Diamine Penicillin Benzathine Pen. G Injectable 12,00,000 units Vial 12 lac units
Erythrox Erythromycin Stearate Tablet 250, 500mg 5x10’s
Erythrox Erythromycin Ethyl-succinate DPS 125mg/5ml Bottle 100ml
Furocef IM/IV Cefuroxime Sodium Injectable 250, 750mg Vial 250, 750mg
Furocef IM/IV Cefuroxime Sodium Injectable 1gm Vial 1gm
Furocef IV/IM Cefuroxime Sodium Injectable 1.5gm Vial 1.5gm
Furocef Cefuroxime Axetil Tablet 125mg 2x5’s
Furocef Cefuroxime Axetil DPS 125mg/5ml Bottle 70ml
Flontin Ciprofloxacin Hydrochloride Tablet 250mg 2x10’s
*DPS= Dry Powder for Suspension

Flontin Ciprofloxacin Hydrochloride DPS 250mg/5ml Bottle 60ml
Flontin IV Ciprofloxacin Lactate IV Infusion 2mg/ml Vial 100ml
Flustar Flucloxacillin Sodium Capsule 250mg 12x4’s
Flustar Flucloxacillin Sodium Capsule 500mg 7x4’s
Furoclav Cefuroxime 500mg + Clavulanic Acid 125 mg Tablet 500mg 2x7’s
Furoclav Cefuroxime 250mg + Clavulanic Acid 62.5 mg Tablet 250mg 2x7’s
Gatlin Gatifloxacin HCL Tablet 400mg 5x6’s
Iropen IV Imipenem/Cilastatin Injectable 500mg Vial 500mg
Levoking Levofloxacin Hemihydrate Tablet 500mg 5x6’s
Levoking Levofloxacin Hemihydrate Tablet 750mg 3x6’s
Levoking Levofloxacin Hemihydrate Oral Solution 125mg/5ml Bottle 100ml
Meropen IV Meropenem Injectable 500mg Vial 500mg
Meropen IV Meropenem Injectable 1gm Vial 1gm
Orcef Cefixime Tablet 200mg 2x6’s
Orcef Cefixime Tablet 400mg 1x6’s
Orcef Cefixime DPS 100mg/5ml 70ml/50ml/40ml/30ml
Orcef Cefixime Capsule 200mg 2x8’s
Palcef Cefdinir Capsule 300mg 2x5’s
Palcef Cefdinir DPS 125mg/5ml Bottle 60ml
Palcef DS Cefdinir DPS 250mg/5ml Bottle 30ml
Polycef Cephradine Capsule 250mg 5x4’s
Polycef Cephradine Capsule 500mg 7x4’s
Polycef Cephradine DPS 125mg/5ml Bottle 100ml
Polycef DS Cephradine DPS 250mg/5ml Bottle 100ml
Polycef Cephradine Injectable 250mg Vial 250mg
Polycef Cephradine Injectable 500mg Vial 500mg
Polycef Cephradine Injectable 1g Vial 1g
Polycef PD Cephradine Ped. Drops 125mg/1.25ml Bottle 15ml
Pronapen Procaine penicillin + Penicillin G Injectable 4,00,000 units Vial 4 lac &
8,00,000 units Vial 8 lac units
Qcin Clindamycin Capsule 150mg 5x6’s
Qcin Clindamycin Injectable 300mg/2ml 1x5’s
Qcin Clindamycin Capsule 300mg 5x6’s
Qcin Clindamycin Injectable 600mg/4ml 1x5’s
Renamycin Oxytetracycline Capsule 250mg 60’s
Renamycin Oxytetracycline Injectable 50mg/ml Vial 10ml
Relexid Pivmecillinam Tablet 200mg 3x10’s
Trucef Cefpodoxime Proxetil DPS 40mg/5ml Bottle 50ml
Trucef DS Cefpodoxime Proxetil DPS 80mg/5ml Bottle 50ml
Trucef PD Cefpodoxime Proxetil Ped. Drops 20mg/ml Bottle 15ml
Tazopen Piperacillin/Tazobactam IV Infusion 4.5gm 1x1’s
Toplon Gemifloxacin Tablet 320mg 6x1’s
Vcap Neomycin Sulphate+ Polymyxin B Soft Gelatin 35000 I.U.+ 35000 I.U. 1x6’s
Sulphate+ Nystatin+Metronidazole Capsule 100000 I.U.+ 200mg
Zithrin Azithromycin Capsule 250mg 2x 6’s
Zithrin Azithromycin Tablet 250mg, 500mg 2x6’s
Zithrin Azithromycin DPS 200mg/5ml 15ml/20ml/35ml/50ml
Zithrin Azithromycin IV Infusion 500mg Vial 500mg
ANTI-HYPERTENSIVE
Cardipin Amlodipine Tablet 5mg 5x10’s
Cardipin Plus Amlodipine+Atenolol Tablet 5mg+50mg 5x10’s
•40
Minipril Enalapril Tablet 5mg/10mg 10x10’s
Evascon Diltiazem Tablet 30mg/60mg 10x10’s
Alphapress Prazosin Hydrochloride Tablet 1mg & 2mg 10x10’s
Ostan Losartan Potassium Tablet 25mg & 50mg 3x10’s
Ostan Plus Losartan Potassium+ Hydrochlorothiazide Tablet 50/100mg+12.5/25mg 3x10’s
Plagrin Clopidogrel Tablet 75mg 2x10’s
Plagrin Plus Clopidogrel+ Aspirin Tablet 75mg+75mg 2x10’s
Metaloc Metoprolol Tartrate Tablet 50mg 10x10’s
Metaloc Metoprolol Tartrate Tablet 100mg 5x10’s
Pendoril-2 Perindopril Tablet 2mg 2x10’s
Pendoril-4 Perindopril Tablet 4mg 2x10’s
Pendoril Plus-2 Perindopril + Indapamide Tablet 2mg + 0.625mg 2x10’s
Pendoril Plus-4 Perindopril + Indapamide Tablet 4mg + 1.25mg 2x10’s
Valzide-80 Valsartan + Hydrochlorothiazide Tablet 80mg + 12.5mg 4x5’s
Valzide-160 Valsartan + Hydrochlorothiazide Tablet 160mg + 12.5mg 4x5’s
Bisoren-2.5 Bisoprolol Fumarate Tablet 2.5mg 3x10’s
Bisoren-5 Bisoprolol Fumarate Tablet 5mg 3x10’s
Uritone-20 Furosemide+ Spironolactone Tablet 20mg + 50mg 3x10’s
Uritone-40 Furosemide+ Spironolactone Tablet 40mg + 50mg 3x10’s
LIPID LOWERING AGENT
Zostin Simvastatin Tablet 10mg 3x10’s
Taven Atorvastatin Tablet 10mg/20mg/40mg 3x10’s
Fenobate Fenofibrate Capsule 200mg 5x6’s
Rolip Rosuvastatin Calcium Tablet 10mg 3x10’s
ANTI-DIABETIC
Bigmet-500 Metformin HCL Tablet 500mg 10x10’s
Bigmet-850 Metformin HCL Tablet 850mg 10x10’s
Glicron CR Gliclazide CR pellets Capsule 30mg 3x10’s
Glicron Gliclazide Tablet 80mg 3x10’s
Mepid Glimepiride Tablet 1mg 3x10’s
Pioglin Pioglitazone Tablet 15mg 3x10’s
Pioglin Pioglitazone Tablet 30mg 1x10’s
HAIR REGROWTH
Regain 5% Minoxidil Solution 5% 60ml
Regain 2% Minoxidil Solution 2% 60ml
EYE-EAR AND TOPICAL PREPARATIONS
Renamycin Eye/ Oxytetracycline HCL + Ointment 5mg/gm 3.5gm
Ear ointment Polymyxin-B-Sulfate
Renamycin Oxytetracycline HCL + Solution 5mg/ml Vial/Bottle 5ml
otic Solution Benzocaine
Renamycin Oxytetracycline HCL + Topical ointment 30mg/gm Tube 5gm
topical Oint. Polymyxin-B-Sulfate
Deltasone-N Eye/ Prednisolone + Neomycin Drops 0.5% Bottle 5ml
Ear drops
ANTIGOUT
Feburen Febuxostat Tablet 40mg 3x10’s
Feburen Febuxostat Tablet 80mg 1x10’s

NSAIDS
Flexicam Piroxicam Capsule 10mg 10x10’s
Flexicam IM Piroxicam Injection 20mg/ml Amp. 2ml
Celox-R Celecoxib Capsule 100mg 5x10’s
Celox-R Celecoxib Capsule 200mg 5x10’s
Ceclofen Aceclofenac Tablet 100mg 5x10’s
Dysmen Mefenamic Acid Tablet 250mg 10x10’s
Dysmen Mefenamic Acid Tablet 500mg 5x10’s
Rolac Ketorolac Tablet 10mg 4x10’s
Rolac Ketorolac Injectable 10mg/1ml 1x 6’s
Rolac Ketorolac Injectable 30mg/1ml 1x6’s
Rolac Ketorolac Injectable 60mg/2ml 2x1’s
Cartilage Plus Gulcosamine Sulfate+ Tablet 250mg+200mg 5x6’s
Chondroitin Sulfate
Xenapro 250 Naproxen Tablet 250mg 5x10’s
Xenapro 500 Naproxen Tablet 500mg 5x6’s
Rapidol Tramadol Hydrochloride Injectable 100mg/2ml 1x5’s
Maxolax Baclofen Tablet 10mg 3x10’s
Maxolax Baclofen Tablet 5mg 3x10’s
ANTIULCER AGENTS
Norma-H Ranitidine Tablet 150mg 10x10’s
Prazole Omeprazole Capsule 20mg 6x10’s
Maxpro Esomeprazole Tablet 20mg 10x10’s
Maxpro Esomeprazole Tablet 40mg 3x10’s
Maxpro Esomeprazole Capsule 20mg 6x10’s
Maxpro Esomeprazole Capsule 40mg 5x6’s
Maxpro Esomeprazole Injectable 40mg 1x1’s
Maxpro HP Esomeprazole+Amoxicillin+ Capsule+Tablet+ 20mg+500mg+ 14x4’s
Clarithromycin Tablet 500mg
Protonil Pantoprazole Tablet 20mg 5x10’s
Protonil Pantoprazole Tablet 40mg 3x10’s
ANTI-PARASITIC & ANTI-PROTOZOAL AGENTS
Xanita Nitazoxanide Tablet 500mg 3x6’s
Xanita Nitazoxanide DPS 100mg/5ml Bottle 30ml
Xanita Nitazoxanide DPS 100mg/5ml Bottle 60ml
Delentin Pyrantel Pamoate Tablet 125mg 10x10’s
Delentin Pyrantel Pamoate Suspension 50mg/ml Bottle 10ml
Alentin Albendazole Tablet 200mg 2x40’s
Alentin DS Albendazole Tablet 400mg 1x 25’s
Protogyn Tinidazole Tablet 500mg 10x10’s
Protogyn Tinidazole Tablet 1gm 5x4’s
ANTI-FUNGAL AGENT
Lucan-R Fluconazole Capsule 50mg 5x8’s
Lucan-R Fluconazole DPS 50mg/5ml Bottle 35ml
Conasyd Tioconazole Cream 1% dermal Tube 10gm
ANTI-TUBERCULOSIS AGENT
Streptomycin Streptomycin Sulfate Injectable 1gm Vial 1gm
ANTI-SPASMODIC
Ranicon Oxyphencyclimine HCL Tablet 5mg 50x10’s
•42
Algin Tiemonium Tablet 50mg 5x10’s
Algin Tiemonium Injectable 5mg/2ml 1x 5’s
Algin Tiemonium Syrup 10mg/5ml 100ml
STEROID
Deltasone Prednisolone Tablet 5mg 50x10’s
Deltasone Prednisolone Syrup 100ml 1’s
Deltasone Prednisolone Syrup 50ml 1’s
Deltasone Prednisolone Oral Solution 5mg/5mL Bottle 100ml
Deltasone Prednisolone Oral Solution 5mg/5mL Bottle 100ml
Dexatab Dexamethasone Tablet 0.5mg 25x10’s
Dexa IM/IV Dexamethasone Injectable 5mg/ml 10’s
COSMETIC HEALTH CARE PRODUCT: (ANTI-ACNE AGENT)

Trinon Cream Isotretinoin Cream 0.025%, 0.05% w/w Tube 10gm
Caress Cream Benzoyl Peroxide Cream 2.5%, 5% w/w Tube 15gm
ANTI-OSTEOPOROTIC
Ivana Ibandronic Acid Tablet 150mg 1’s
VITAMINS & MINERALS

Beconex Vitamin B-Complex Capsule - Bottle 30’s
Beconex Vitamin B-Complex Syrup - Bottle 100ml
Beconex Vitamin B-Complex Syrup - Bottle 200ml
Beconex Vitamin B-Complex Injectable - Vial 10ml
Beconex ZI Iron+Vitamin B-Complex & Zinc Syrup - Bottle 100ml
Beconex ZI Iron+Vitamin B-Complex & Zinc Syrup - Bottle 50ml
Becosules Vitamin B-Complex + Vit-C Capsule - 16x6’s
Becosules Gold Vitamin B-Complex + Vit-C Capsule - 15x6’s
Chewrol Iron + Folic Acid Chewable Tablet 100mg + 350mcg 5x6’s
Calcin Calcium Carbonate Tablet 500mg 5x10’s
Calcin-D Calcium+Vit-D Tablet 500mg+200IU 6x10’s, Pot 15’s, Pot 30’s
Calcin-M Calcium Carbonate+Vit-D+Mineral Tablet - 4x10’s, Pot 30’s
E-gel Vitamin E Soft Gelatin Capsule 200mg 10x10’s
E-gel DS Vitamin E Soft Gelatin Capsule 400mg 5x10’s
Ferix Carbonyl Iron, Folic Acid and Zinc Capsule 50 mg+500 mcg+61.8 mg 6x10’s
Kiddi Multivitamin+Codliver oil Syrup - Bottle 100ml
Kiddi Multivitamin+Codliver oil Syrup - Bottle 200ml
Pushtikona Micronutrient Powder Powder in Sachet - 1 x 30’s
Mazic 20 Zinc Sulfate Monohydrate Tablet 20mg 3 x 10’s
Mazic Jr Zinc Sulfate Monohydrate Syrup 4.05mg/5ml Bottle 100ml
Mazic Zinc Sulfate Monohydrate Syrup 10mg/5ml Bottle 100ml
Mazic DS Zinc Sulfate Monohydrate Syrup 20mg/5ml Bottle 100ml
Neurobest Vit B1+B6+B12 Tablet 100mg+200mg 6x10’s
+200mcg
Neurobest Vit B1+B6+B12 Injectable 100mg+100mg 2x5’s
+1mg
Lucent Calcitriol Soft Gelatin Capsule 0.25mcg 3x10’s
Calciferol Cholecalciferol IM Injection 200000 IU/ml 1’s
ANTI-OXIDANT
Proxid Antioxidant (Vit A,C,E) Tablet - Bottle 20’s
ANTI-ALLERGIC
Fenadin Fexofenadine HCL Tablet 60mg 3 x10’s

Fenadin Fexofenadine HCL Suspension 30mg/5ml Bottle 30ml
Allermine Chlorpheniramine Maleate Syrup 2mg/5ml Bottle 100ml
Tiramin Cetirizine Tablet 10mg 10 x10’s
CNS-PRODUCT
Gaba Gabapentin Tablet 300mg 3 x10’s
Gaba-p Pregabalin Capsule 50mg 3x10's
Gaba-P Pregabalin Capsule 75mg 3 x10’s
Renxit Flupentixol+Melitracen Tablet 0.5mg+10mg 10 x10’s
Norry Bromazepam Tablet 3mg 5 x10’s
Cabretol Carbamazepine Tablet 200mg 5 x10’s
Cabretol Carbamazepine CR Tablet 200mg 5 x10’s
Cabretol Carbamazepine Syrup 100mg/5ml Bottle 100ml
Sperid Risperidone Tablet 1mg 5 x10’s
Sperid Risperidone Tablet 2mg 5 x10’s
Denixil Clonazepam Tablet 0.5mg, 2mg 5 x10’s, 3x10’s
Midzo Midazolam Tablet 7.5mg 3x10’s
Midzo Midazolam Injection 15mg/3ml 1’s
HORMONE & ANTI-CANCER

Normens Norethisterone Acetate Tablet 5mg 6 x 10’s
Bredicon Desogestrel Tablet 750mcg 1 x 28’s
Criptine Bromocriptine Mesilate Tablet 2.5mg 1 x 30’s
Emcon 1 Levonorgestrel Tablet 1.5mg 1 x 1’s
Letrol Letrozole Tablet 2.5mg 2 x 5’s
Ovulet 50 Clomiphene Citrate Tablet 50mg 1 x 10’s
Ovulet 100 Clomiphene Citrate Tablet 100mg 1 x 5’s
Medrogest Medroxyprogesterone Acetate Tablet 5mg, 10mg 3 x10’s
Thyrox 50 Levothyroxine Sodium Tablet 50mcg 3x30’s
Menorest Tibolone Tablet 2.5mg 1x28’s
Desolon Desogestrel+Ethinylestradiol Tablet 0.15mg+0.03mg 1x21’s
Giane 35 Cyproterone Acetate + Tablet 2.0mg+ 1x21’s
Ethinylestradiol 0.035mg
Nandron Nandrolone Phenylpropionate Injection 25mg/ml 1x5’s
Nandron Nandrolone Decanoate Injection 50mg/ml 1x1’s
Gestrenol Allylestrenol Tablet 5mg 3x10’s
Regumen Lynestrenol+Ethinylestradiol Tablet 2.5mg+0.05mg 1x21’s
Estracon Conjugated Estrogens Tablet 0.625mg 3x10’s
Metorax Methotrexate Tablet 2.5mg 3x10's
Microgest Natural Micronized Progesterone Capsule 100mg 3x10's
Microgest Natural Micronized Progesterone Capsule 200mg 3x10's
Novelon Drospirenone Tablet 3mg & 0.03mg 1x21's
and Ethinylestradiol
Danzol Danazol Capsule 100mg & 200mg 3 x10’s, 2x10’s
Proscan Flutamide Tablet 250mg 3x10’s
Cabolin Cabergoline Tablet 0.5mg 2x2’s
Indula Misoprostol Tablet 200mczg 3x10’s
Mif Mifepristone Tablet 200mg 1x3’s
OXYTOCIC
Oxyton Oxytocin Injection 5 I.U. 2x5’s
ANTI-FIBRINOLYTICS
Xamic Tranexamic Acid Capsule 500mg 2x10’s
Xamic Tranexamic Acid Injectable 500mg/5ml 1x5’s
•44
ANTIDIABETIC
Stamet Sitagliptin+Metformin Tablet 50mg+500mg Bottle 100ml
ANTI-ASTHMA
Trulax Levosalbutamol Syrup 1mg/5ml Bottle 100ml
Totifen Ketotifen Tablet 1mg 10x10’s
Totifen Ketotifen Syrup 1mg/5ml Bottle 100ml
Odmon Montelukast Tablet 5mg 1x10’s
Odmon Montelukast Tablet 10mg 2x10’s
EXPECTORANT
Topex Guaiphenesin Pseudoephedrine Syrup 131.25mg/5ml Bottle 100ml
Recof Ambroxol Hydrochloride Syrup 15mg/5ml 100ml
Recof Ambroxol Hydrochloride Paed. Drops 6mg/ml 15ml
VACCINE (IMPORTED)
Rabipur Anti-rabies vaccine Injectable 1ml 1ml vial
Vaxem-Hib Hib vaccine Injectable 0.5ml 0.5ml in Prefilled Syringe
GASTROPROKINETIC AGENTS
Domiren Domperidone Tablet 10mg 15x10’s
Domiren Domperidone Paediatric Drops 5mg/ml Bottle 15ml
Domiren Domperidone Suspension 5mg/5ml Bottle 60ml
ORAL REHYDRATION SALINE
Saline-R ORS Salt Powder 10.25gm/500 ml Sachet, 20’s
NARCOTIC ANALGESIC
Fentanyl Fentanyl Citrate IV Injection 100µgm/2ml 1x5’s
ANTIPYRETIC/ ANALGESIC
Pyralgin Paracetamol Tablet 500mg 50x10’s
Pyralgin Paracetamol Suspension 120mg/5ml 60ml
Pyra Plus Paracetamol+Caffeine Tablet 500mg+65mg 15x10’s
AMINO ACID SUPPLEMENT
Protemin 5% Composite Amino Acid IV Infusion 500ml Bottle 500ml
Solution with D-sorbitol
ANTIEMETIC
Emeren Ondansetron Tablet 4mg 3x10’s
Emeren Ondansetron Tablet 8mg 3x10’s
Emeren Ondansetron Injectable 8mg/4ml 1x5's
Emeren Ondansetron Syrup 4mg/5ml 50ml
ANESTHETIC
Neos-R Neostigmine Injectable 5ml, 1ml 1x5’s
Kain Ketamine Injectable 50mg/ml 1’s
Sivicaine Heavy Bupivacaine+Dextrose Injectable 5mg+80mg 1x5’s
Epidron Ephedrine Injectable 5mg 1x5’s
OTHERS
Normanal Diosmin + Hesperidin Tablet 450mg + 50mg 3x10’s
Tegarid Tegaserod Tablet 6mg 3x10’s
Titolax Lactitol Monohydrate Powder 10gm Sachet, 1x10’s
Honycol Liquid Sugar & Glycerol Linctus (0.75 ml+1.93 ml)/5ml Bottle 100ml, 200ml
Mez IV Metronidazole IV Infusion 0.5% W/V Bottle 100ml
Tolter Tolterodine Tartrate Tablet 1mg & 2mg 3x10’s
Phenocept Mycophenolate Mofetil Tablet 500mg 3x10’s
Feristar Iron Sucrose Injectable 100mg Iron/5ml 1’s
Enteca Entecavir Tablet 0.5mg 1x10’s
Erecta Sildenafil Tablet 50mg 1x4’s
Erecta Sildenafil Tablet 100mg 1x4’s

ANIMAL HEALTH PRODUCTS
ANTIBIOTIC
Trade Name Generic Name Formulation Strength Pack
Renamycin AF Tablet Oxytetracycline USP Tablet 500mg 5 x 4’s
Renamycin Injectable Solution Oxytetracycline USP Injection 50mg/ml 10ml
Renamycin-100 with PVP Oxytetracycline USP Injection 100mg/ml 10ml, 100ml
Renamycin/LA Oxytetracycline USP Long Acting Injection 200mg/ml 10ml
Pronapen 40 lac Procaine Penicillin BP Injection 3MIU+1MIU Vial 40 lac
Benzyl Penicillin Sodium
Streptopen Procaine Penicillin BP Injection 1.5MIU+ Vial 0.5g, 2.5g
Benzyl Penicillin Sodium 0.5MIU+2.5gm
Streptomycin USP
Gentaren Gentamicin Sulphate Injection 100mg/ml 10ml & 100ml
Renamox Amoxycillin Tablet 500mg 20’s
Amcox Amoxycillin+Cloxacillin Injection 1.25gm+1.25gm Vial 2.5gm
CEPHALOSPORIN
Renacef Ceftriaxone Injection 1gm, 2gm Vial 1gm & 2gm
SULPHONAMIDES
Diadin Sulphadimidine Sodium BP Injection 333mg/ml 30ml, 100ml
Diadin Sulphadimidine BP Bolus 5gm 10 x 2’s
Sulpha Plus Sulphadiazine USP Bolus 1.583gm+ 10 x 2’s

Sulphadimidine BP 1.583gm+
Sulphapyridine USP 1.583gm+
Streptomycin Sulphate USP 0.313gm
Sulpha -3 Sulphadiazine USP Bolus 1.666gm+ 10 x 2’s
Sulphadimidine BP 1.666gm+
Sulphapyridine USP 1.666gm
Renatrim Sulphadiazine + Trimethoprim Bolus 1000mg+200mg 10 x 2’s
ANTHELMINTIC
Helmex Albendazole USP Tablet 600mg 5 x 4’s
Nitronex 34% Nitroxynil BP Injection 340mg/ml 10ml
Tremacid Oxyclozanide BP Tablet 1000mg 5 x 4’s
Deminth Morantel Base Tablet 446mg 5 x 4’s
Renadex Triclabendazole + Tablet 900mg+600mg 10 x 2’s
Levamisole
ANTIPROTOZOAL
Ectorid Imidocarb Dipropionate Injection 133.26mg/ml 10ml
Renamet Bolus Metronidazole Bolus 2gm//Bolus 5 x 4’s
ANTI-HISTAMINIC
Dellergen Promethazine HCL USP Injection 50mg/ml 10ml
Dellergen Promethazine HCL USP Bolus 150mg/Bolus 10 x 4’s
Renacin Injection Clorpheniramine Maleate Injection 10mg/ml 10ml, 100ml
NSAID
Renafen Ketoprofen Injection 100mg/ml 5ml, 10ml
Pyralgin Paracetamol Tablet 2gm 10 x 2’s
Fevenil Injection Tolfenamic Acid Injection 40mg/ml 10ml
GLUCOCORTICOID
Predexanol - S Prednisolone Anhydrous USP Injection 7.5mg+2.5mg/ml 10ml
Dexamethasone Trimethyl
Acetate USP
•46
APPETIZER & RUMENOTORIC
Anorexon Cobalt Sulphate BP Tablet 50mg+ 15 x 4’s
Dried Ferrous Sulfate USP 100mg+
Thiamine Mononitrate USP 25mg+
Vitamin B12 USP 20mcg+
Choline Bitartrate BP 9.1mg
Anorexon DS Bolus Cobalt Sulphate BP Bolus 100mg+ 10 x 4’s
Dried Ferrous Sulfate USP 200mg+
Thiamine Mononitrate USP 50mg+
Vitamin B12 USP 40mcg+
Choline Bitartrate BP 18.2mg
Rumenton Antimony Potassium Tartrate USP Bolus 2gm+2gm 10 x 2’s
Ferrous Sulphate USP
Stomavet Ammonium Bi-carbonate BP Powder 5gm+ 20g x 20
Nuxvomica Powder BP 1.4gm+
Sodium Bi-carbonate BP 13gm+
Gentian Powder BP .3gm+
Ginger Powder BP .3gm
METABOLIC
Cal-D Mag (with phosphorus) Calcium Gluconate USP Injection 20.8+20.0+5.0+0.1mg/ml 200ml
Dextrose USP
Magnesium Hypophosphate BP
Chlorocresol (as preservative) BP
Vitaphos Toldimphos Injection 200mg+0.05mg/ml 30ml
Cyanocobalamine (Vit B12) BP
Catophos Butaphosphan Injection 100mg+0.05mg/ml 100ml, 30ml
Cyanocobalamine (Vit B12) BP
Levabon Rumen E Saccharomyces Cerevisiae Powder 100cfu/gm 20g
Rumen E Saccharomyces Cerevisiae Powder 100cfu/gm 100g
HORMONE PRODUCTS
Ovurelin Gonadorelin (as Acetate) Injection 100mcg/ml 20ml
Ovuprost Cloprostenol (as Sodium) Injection 250mcg/ml 20ml
VITAMIN-MINERAL INJECTION
Hemovit Iron+Copper+ Injection 15mg+0.2mg+ 10ml
cobalt+Vitamin B-complex 0.7mg+202.86mg/ml
Renasol AD3E Vitamin A, D3 & E Injection 0.5MIU+0.075MIU+ 10ml, 30 ml
50mg/ml
POULTRY PRODUCTS
Enrocin Enrofloxacin Oral Solution 100mg/ml 100ml, 1L
Micronid Erythromycin Thiocyanate Powder 180mg+150mg+30mg/gm 10g, 100g
Sulphadiazine USP
Trimethoprim USP
Sultrik Sulfachloropyridazine+ Powder 100mg+20mg/gm 100g
Trimethoprim
Mycostop Tylosin BP Powder 200mg/gm 100g, 1kg
Doxivet Doxycycline USP Powder 100mg/gm 100g
Renatrim Sulphadiazine BP Suspension 400mg+80mg/ml 100ml
Trimethoprim BP
Renamox 15% Amoxycillin Powder 150mg/gm 100g, 500g, 1kg
Renamox 30% Amoxycillin Powder 300mg/gm 100g, 500g, 1kg
Renaquine 10% Flumequine INN Powder 100mg/gm 100g

Renaquine 20% Flumequine INN Liquid 200mg/ml 100ml
Renagard 45% Tiamulin Hydrogen Fumarate Powder 450mg/gm 100g
Renaflox Ciprofloxacin Powder 200mg/gm 100g
NDoxi Doxycycline+Neomycin Powder 150mg+150mg/gm 100g
ANTHELMINTIC
Avinex Levamisole HCL USP Powder 300mg/gm 10g, 100g
ANTI-COCCIDIAL
Coxicure Sulphaclozine Sodium Powder 300mg/gm 100g
Monohydrate INN
Renazuril Suspension Toltrazuril Suspension 25mg/ml 100ml
ELECTROLYTE
Renalyte Vitamin A Powder 2MIU+ 1kg
Sodium Bi-carbonate BP 500gm+
Sodium Chloride BP 266gm+
Dextrose BP 179.6gm+
Potassium Chloride BP 50gm/kg
NUTRITION PRODUCTS
Rena WS Vit B Complex+A+ Powder 111.52+0.1MIU+ 10g, 50g,
D+E+C 0.025MIU+20mg 100g,1kg
+300mg/gm
Rena B+C Vitamin B Complex & Vit. C Powder 22.12mg+5mg/gm 100g, 500g, 1kg
Rena C Ascorbic Acid Powder 999.00mg/gm 100g, 1kg
Rena K Menadione Sodium bisulphite Powder 100mg/gm 10g
Renasol AD3E Vitamin A, D3 + E Oral Solution 0.1MIU+0.02MIU 100ml, 1L
+20mg/ml
Renavit DB Vitamin & Mineral Premix Powder 100g, 500g, 1kg
Rena-Sel E Vitamin E + Selenium Oral Solution 80mg+0.6mg/ml 100ml. 1L
NUTRITIONAL PREMIX
Rena Breeder Vitamin+Mineral Powder 44.99gm+68.42gm/kg 2.5kg
Rena Broiler Vitamin+Mineral Powder 41.73gm+72.38gm/kg 2.5kg
Rena Grower Vitamin+Mineral Powder 31.06gm+52.36gm/kg 2.5kg
Rena Layer Vitamin+Mineral Powder 35.38gm+47.59gm/kg 2.5kg
Rena Fish Vitamin+Mineral Powder 43.75gm+53.55gm/kg 1kg
IMPORTED
Availa 4 Zinc+Manganese Powder 51.5mg+28.6mg 10gm,100gm
+Copper +18.0mg+1.8mg & 500gm
+Cobalt+AminoAcid +204.8mg/gm
Availa Z/M Zinc+Manganese Powder 40mg+ 500gm
Chealeted with AA 40mg/gm
Biotronic SE Formic Acid+Propionic Acid Powder 23mg+5mg/ml 25kg
Biotronic SE Forte Liquid Formic Acid+Propionic Acid+ Oral Solution 23mg+5mg+ 100ml, 1L
Lactic Acid 1mg/ml
Mycofix Plus 3.0 SBM+Epoxidase+Esterase+ Powder NA 1kg & 25kg
Phytogenic+Phycophytic
Mycofix Select 3.0 SBM+Epoxidase+ Powder NA 1kg & 25kg
Phytogenic+Phycophytic
Mycofix ECO 3.0 SBM+Phytogenic Powder NA 1kg & 25kg
Mycofix Secure Smectite with Bentonite Powder 100% 25kg
Biomin Phytase 5000 Phytase Enzyme Powder 5000FTU/gm 25kg
Rena Phytase 400 Phytase Enzyme Powder 400FTU/gm 1kg
•48
Lisovit Muramidase+Peroxidase+ Powder NA 10gm, 100gm
FOS+Vitamin E+C & 1kg
Vigest Vitamin+Mineral Oral Solution 3.58mg+0.078mg 500ml, 2L
+Amino Acid +67.33mg/ml
Poultry TMO Zinc+Manganese+ Powder 32mg+ 25kg
Copper+ 32mg+8mg+
Iron+Iodine+ 5mg+1.2mg+
Selenium+MHA 0.15mg+400mg/gm
Mintrex PSe Zinc+Manganese+ Powder 40mg+40mg+ 25kg
Copper+ 20mg+
Selenium+MHA 3mg+540mg/gm
Cibenza DP 100 Special Protease Enzyme Powder 0.6MIU/gm 25kg
Poultry Star Sol Pro & Prebiotic Powder NA 10gm
Poultry Star me Pro & Prebiotic Powder NA 25kg
Gas FreeAqua Yucca Powder NA 100g
Vigor Male Fertility Enhancer Powder NA 500g/25kg
NephCare Liquid Nephrotonic Oral solution NA 100ml
Digesterom PEP MGE Phytogenic Growth Promoter Powder NA 25kg
Digesterom PEP 125 Phytogenic Growth Promoter Powder NA 25kg
Ozinc Organic Zinc Solution 85mg/ml 100ml
RenA Tox Liquid Toxinbinder Solution NA 100ml, 1L
Rena Calp Calcium+Phosphorous Solution 24.02mg+8.39mg/ml 1L, 5L
Renaliv Herbal Liver Tonic Solution NA 1L
Rescure Herbal Expectorant Solution NA 100ml, 1L
FAM 30 Iodophore Liquid 27.5mg/ml 100ml, 1L,
GPC8 Gluataraldehyde+QAC Liquid 120mg+40mg/ml 100ml, 1L,
Shift Trisodium based Detergent Solution 113mg/ml 1L, 25L
VACCINES
LIVE VACCINES
IZOVAC Clone Live Attenuated NDV Eye Drop/ Clone 106EID50 1000 Dose
Via Dringking Water
IZOVAC Gumboro 2 Live Intermediate IBDV Eye Drop/ winterfield 1000 Dose
Via Dringking Water 2512 103EID50
IZOVAC Gumboro 3 Live Intermediate Plus IBDV Eye Drop winterfield 1000 Dose
/Via Dringking Water 2512 102.7EID50
IZOVAC B1 Hitchner Live Attenuated NDV Eye Drop/ B1 Hitchner 1000 Dose
Via Dringking Water 106.5EID50
IZOVAC H120 LaSota Live Attenuated NDV Eye Drop/ lasota 106EID50 1000 Dose
Live Attenuated IBV Via Dringking Water H120 106EID50
IZOVAC LaSota Live Attenuated NDV Eye Drop/ lasota 106EID50 1000 Dose
Via Dringking Water
KILLED VACCINES
IZOVAC ND Inactivated NDV Injection lasota 50 PD50 500 Dose
IZOVAC ND-EDS Inactivated NDV Injection lasota 50 PD50 500 Dose
Inactivated EDS EDS 76 50 108 EID50
IZOVAC Coryza 3 Inactivated Coryza Injection H. Paragallinarum 500 Dose
A, B & C 5x109
AQUA PRODUCTS
Aquastar Pond Water Probiotic Powder NA 500gm, 1kg
Biomin Aquaboost Amino Acid Complex Powder NA 1000gm, 25kg
Hepa Protect Aqua Flavanoids Powder NA 100gm, 25kg
Oxy-Ren Sodium Carbonate Peroxhydrate Powder 130mg/gm 1kg
Aquastar grow out Feed Probiotic Powder NA 100gm

as at and for the year ended December 31, 2015
•50
We have audited the accompanying financial
statements of Renata Limited (the “Company”),
which comprise the statement of financial
position as at 31 December 2015, statement
of profit or loss and other comprehensive
circumstances, but not for the purpose of expressing an opinion on
income, statement of changes in equity and
the effectiveness of the entity’s internal control. An audit also
statement of cash flows for the year then
includes evaluating the appropriateness of accounting policies used
ended and a summary of significant accounting
and the reasonableness of accounting estimates made by
policies and other relevant explanatory notes
management, as well as evaluating the overall presentation of the
thereon.
financial statements.
Management’s Responsibility for the
We believe that the audit evidence we have obtained is sufficient and
Financial Statements
appropriate to provide a basis for our audit opinion.
Management is responsible for the preparation
and fair presentation of these financial
Opinion
statements in accordance with Bangladesh
In our opinion, the financial statements prepared in accordance with
Financial Reporting Standards (BFRSs) and
Bangladesh Financial Reporting Standards (BFRSs), give a true and
for such internal control as management
fair view of the financial position of Renata Limited as at 31
determines is necessary to enable the
December 2015 and the results of its financial performance and its
preparation of financial statements that are
statement of cash flows for the year then ended and comply with the
free from material misstatement whether due
Companies Act 1994, the Securities and Exchange Rules 1987 and
to fraud or error.
other applicable laws and regulations.
Auditors’ Responsibility
We also report that:
Our responsibility is to express an opinion on
these financial statements based on our
a) we have obtained all the information and explanations which to
audit. We conducted our audit in accordance
the best of our knowledge and belief were necessary for the
with Bangladesh Standards on Auditing
purposes of our audit and made due verification thereof;
(BSAs). Those standards require that we
comply with ethical requirements and plan
b) in our opinion, proper books of account as required by law have
and perform the audit to obtain reasonable
been kept by the Company so far as it appeared from our
assurance about whether the financial
examination of those books;
statements are free from material misstatement.
c) the statement of financial position and statement of profit or loss
An audit involves performing procedures to
and other comprehensive income along with the annexed notes 1
obtain audit evidence about the amounts and
to 43 dealt with by the report are in agreement with the books of
disclosures in the financial statements. The
account; and
procedures selected depend on the auditor’s
judgment, including the assessment of the
d) the expenditure incurred and payments made were for the
risks of material misstatement of the financial
purposes of the Company's business.
statements, whether due to fraud or error. In
making those risk assessments, the auditor
considers internal control relevant to the
entity’s preparation and fair presentation of
the financial statements in order to design Dated, Dhaka Hoda Vasi Chowdhury & Co.
audit procedures that are appropriate in the 30 April 2016 Chartered Accountants

RENATA LIMITED
STATEMENT OF FINANCIAL POSITION
Amount in Taka
AS AT 31 DECEMBER 2015
ASSETS Notes 2015 2014
Non-current assets
Property, plant and equipment at cost/revaluation less
accumulated depreciation 5 8,695,862,142 8,106,692,561
Capital work-in-progress 6 723,265,414 857,479,062
Investment in subsidiaries 7 143,069,376 143,069,376
Investment in shares 8 92,394,660 89,957,645
9,654,591,592 9,197,198,644
Current assets
Inventories 9 3,374,274,252 2,760,765,470
Trade receivables 10 1,750,889,884 1,357,104,301
Other receivables 11 724,662,495 556,696,172
Advances, deposits and prepayments 12 242,482,445 219,796,846
Loan to Renata Agro Industries Limited 13 100,000,000 150,000,000
Cash and cash equivalents 14 290,874,236 252,007,296
6,483,183,312 5,296,370,085
TOTAL ASSETS 16,137,774,904 14,493,568,729
EQUITY AND LIABILITIES

Shareholders' equity
Share capital 15 529,535,140 441,279,290
Revaluation surplus 16 156,520,407 156,998,911
Tax holiday reserve 17 315,027,439 296,337,069
Available for sale reserve 14,481,443 13,110,323
Retained earnings 18 8,390,295,168 6,842,987,470
9,405,859,597 7,750,713,063
Non-current liabilities
Deferred liability - staff gratuity 19 - 200,269,510
Deferred tax liability 20 755,787,810 545,897,110
Long term loan - net off current portion 21 328,914,992 782,510,495
1,084,702,802 1,528,677,115
Current liabilities
Short term bank loan and overdrafts 22 3,233,496,219 3,321,414,754
Long term loan - current portion 21 157,000,003 235,900,003
Trade payables 23 263,501,276 124,715,572
Cost accruals 24 663,423,754 418,070,206
Provisions and other liabilities 25 560,483,617 476,373,410
Unclaimed dividend 26 17,061,417 12,963,898
Provision for taxation 27 752,246,219 624,740,709
5,647,212,505 5,214,178,552
TOTAL EQUITY AND LIABILITIES 16,137,774,904 14,493,568,729
The annexed notes 1 to 43 form an integral part of these financial statements.
CEO & Managing Director Director Chief Financial Officer

As per our annexed report of same date.
Dhaka, 30 April 2016 Hoda Vasi Chowdhury & Co.

Chartered Accountants
•52
RENATA LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2015
Amount in Taka
Tax holiday units 2015 2014

Cepha Facility Penicillin Facility
February- February-
Non-tax January December Total of January December Total of
Notes holiday (25% tax (no tax Cepha (50% tax (25% tax Penicillin
units exemption) exemption) Facility exemption) exemption) Facility Total Total
Turnover 28 11,533,432,880 73,373,175 974,611,435 1,047,984,610 13,195,902 286,344,036 299,539,938 12,880,957,428 11,107,281,260
Cost of sales 29 (5,501,574,278) (42,459,203) (563,983,019) (606,442,222) (10,034,894) (217,751,847) (227,786,741) (6,335,803,240) (5,418,971,406)
Gross Profit 6,031,858,603 30,913,972 410,628,417 441,542,389 3,161,008 68,592,189 71,753,197 6,545,154,188 5,688,309,854
Administrative, selling and
distribution expenses 30 (3,229,311,328) (10,612,518) (140,965,428) (151,577,946) (1,199,581) (26,030,275) (27,229,856) (3,408,119,130) (2,794,405,786)
Other income 31 12,907,658 - - - - - - 12,907,658 17,036,235
Operating profit 2,815,454,933 20,301,454 269,662,988 289,964,443 1,961,427 42,561,914 44,523,341 3,149,942,716 2,910,940,303
Finance cost 32 (254,785,696) (1,475,527) (19,599,331) (21,074,858) (264,068) (5,730,145) (5,994,213) (281,854,767) (463,471,214)
Profit before contribution to WPPF 2,560,669,237 18,825,927 250,063,657 268,889,585 1,697,359 36,831,769 38,529,128 2,868,087,949 2,447,469,089
Contribution to WPPF (121,936,630) (896,473) (11,907,793) (12,804,266) (80,827) (1,753,893) (1,834,720) (136,575,616) (116,546,147)
Profit before tax 2,438,732,606 17,929,455 238,155,864 256,085,319 1,616,532 35,077,876 36,694,408 2,731,512,333 2,330,922,942
Tax expenses
Current tax 27 (447,507,523) (1,120,591) (59,417,327) (60,537,918) (202,066) (6,575,280) (6,777,346) (514,822,787) (547,846,534)
Deferred tax 20 (210,048,082) - - - - - - (210,048,082) (72,213,883)
(657,555,605) (1,120,591) (59,417,327) (60,537,918) (202,066) (6,575,280) (6,777,346) (724,870,869) (620,060,417)
Net profit after tax for the year 1,781,177,001 16,808,864 178,738,537 195,547,401 1,414,466 28,502,596 29,917,062 2,006,641,464 1,710,862,526
Other Comprehensive Income

Net profit after tax for the year 2,006,641,464 1,710,862,526
Item that will not be reclassified to profit or loss
Unrealized gain on quoted shares 1,371,120 9,346,119
Total comprehensive income for the year 2,008,012,584 1,720,208,645
Basic earnings per share 33 37.89 32.31


RENATA LIMITED
STATEMENT OF CHANGES IN EQUITY
Amount in Taka
Share Revaluation Tax holiday Available for Retained

capital surplus reserve sale reserve earnings Total
Balance at 01 January 2014 353,023,430 157,477,414 249,496,624 3,764,204 5,531,352,939 6,295,114,611

Stock dividend issued 88,255,860 - - - (88,255,860) -
Cash dividend paid - - - - (264,767,575) (264,767,575)
Deferred tax on revaluation surplus - 157,382 - - - 157,382
Depreciation adjustment on revalued assets - (635,885) - - 635,885 -
Net profit after tax for the year - - - - 1,710,862,526 1,710,862,526
Unrealized gain on quoted shares - - - 9,346,119 - 9,346,119
Tax holiday reserve - - 46,840,445 - (46,840,445) -
Balance at 31 December 2014 441,279,290 156,998,911 296,337,069 13,110,323 6,842,987,470 7,750,713,063

Depreciation adjustment on revalued assets - (635,885) - - 635,885 (0)
•54
RENATA LIMITED
STATEMENT OF CASH FLOWS
Amount in Taka
2015 2014
A. Cash flows from operating activities

Collection from customers and other income 14,863,887,285 12,105,896,994
Payment of VAT (1,854,242,945) (1,538,443,103)
Payment to suppliers and employees (10,349,169,376) (8,098,388,763)
Cash generated by operations 2,660,474,964 2,469,065,128
Finance costs (281,854,767) (458,865,536)
Payment of tax (387,317,277) (293,700,917)
Net cash generated from operating activities 1,991,302,920 1,716,498,675
B. Cash flows from investing activities

Purchase of property, plant and equipment (984,234,014) (996,313,586)
Investment in shares (net) (2,437,015) (33,593,978)
Sale proceeds of property, plant and equipment 3,575,000 1,488,275
Net cash used in investing activities (983,096,029) (1,028,419,289)
C. Cash flows from financing activities

Bank loan (repaid) / received (net) (620,414,038) (414,615,552)
Dividend paid (348,925,913) (261,719,425)
Net cash used in financing activities (969,339,951) (676,334,977)
D. Net cash inflow for the year (A+B+C) 38,866,940 11,744,409
E. Cash and cash equivalents at 1 January 252,007,296 240,262,887
F. Cash and cash equivalents at 31 December (D+E) 290,874,236 252,007,296

RENATA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1. Reporting entity
1.1 Company profile

Renata Limited (the “Company”) is a Public Limited Company incorporated in Bangladesh in 1972 as Pfizer Laboratories
(Bangladesh) Limited under the Companies Act 1913. The Company was listed with Dhaka Stock Exchange Limited on 12
May 1979. Subsequently, the Company was renamed as Renata Limited in 1993. The registered office of the company is
situated at Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka - 1216.
1.2 Principal activities

The principal activities of the Company are manufacturing, marketing and distribution of pharmaceutical and animal health
products.
2. Significant accounting policies
2.1 Property, plant and equipment

Item of property, plant & equipment is recognized where it is probable that future economic benefits will flow to the entity and
their cost can be measured reliably.
2.1.1 Measurement and recognition

An item of property, plant & equipment qualifying for recognition is initially measured at its cost. Cost comprises:
- Purchase price including all non recoverable duties and taxes but net off discounts; and
- Costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in
the manner intended by the management.
2.1.2 Subsequent costs

- Repairs and maintenance expenditure is recognized as expenditure when incurred.
- Replacement parts are capitalized, provided that the original cost of the items they replace is derecognized.
2.1.3 Depreciation
Depreciation has been charged on straight-line method on all property, plant and equipment that have already been put on
operation except land. Full month's depreciation is charged for the month of acquisition irrespective of the date of acquisition
and no depreciation is charged for the month of disposal.
The rates of depreciation and category of property, plant and equipment are as follows:
Depreciation rate (%)

Asset Type
2015 2014
Buildings 1.54-5 1.54-5
Plant and machinery 5-20 5-20
Automobiles 25 25
Office equipment 10-12.5 10-12.5
Furniture and fixtures 10 10
2.1.4 Disposal of property, plant and equipment

An item of property, plant and equipment is removed from the statement of financial position when it is disposed of or when
no future economic benefits are expected from its use or disposal. The gain or loss on the disposal of an item of property,
plant and equipment is included in the statement of profit or loss and other comprehensive income of the period in which the
assets are disposed of.
2.1.5 Impairment
The carrying amounts of its assets are reviewed at each financial position date to determine whether there is any indication
of impairment loss. If any such indication exists, recoverable amount is estimated in order to determine the extent of the
impairment loss, if any. Impairment loss is recorded on judgmental basis, for which provision may differ in the future years
based on the actual experience. There is no impairment in 2015 and 2014.
•56
2.1.6 Revaluation of assets
The assets are initially recognized at cost. In 1995, some assets (land and buildings) were revalued by a professional valuer
which resulted in increase of carrying amount as well as creation of revaluation reserve. Additional depreciation on revalued
amount, once charged, is transferred to retained earnings.
BAS-16 “Property, Plant and Equipment”, Paragraph 34 requires that a periodical revaluation is to be carried out at regular
interval if the property price is volatile/significantly differs. It has been seen that for last few years, the property prices are
showing downtrend and no significant difference is expected. However, the management contemplates to review this matter
and undertakes such valuation exercise shortly.
2.2 Capital work-in-progress

Property, plant and equipment under construction / acquisition have been accounted for as capital work-in-progress until
construction/acquisition is completed and measured at cost.
2.3 Investment in subsidiaries

Investment in subsidiaries is accounted for in accordance with BAS-27 “Separate Financial Statements”.
2.4 Investment in shares

Quoted shares are classified as available for sale financial assets and recognized initially at cost. After initial recognition,
investments are measured at fair value and any changes in the fair value are recognized in the statement of profit or loss and
other comprehensive income under the component of other comprehensive income for the period in which it arises.
2.5 Trade receivables

Trade receivables are recognized and stated at original invoiced amounts and carried at anticipated realizable values. Bad
debts are written off when it is established that they are irrecoverable. Specific allowance is made for known doubtful debts.
An estimate is made for doubtful debts based on a review of all outstanding amounts as at the financial position date.
2.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand, balance and deposits with financial institutions that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value.
2.7 Trade payables

Trade payables are stated at cost which approximates the fair value of the consideration to be paid in the future for goods
and services received.
2.8 Interest bearing borrowings

Interest bearing bank loans and overdrafts are recorded at the amount of proceeds received, net off transaction costs.
Borrowing costs directly attributable to the acquisition and construction of plant and equipment are capitalized as part of the
cost of those assets, until such time as the assets are ready for their intended use in accordance with BAS-23 ”Borrowing
Costs”. All other borrowing costs are charged to the statement of profit or loss and other comprehensive income as an
expense in the period in which they are incurred.
2.9 Inventories
Inventories are valued at lower of cost and net realizable value except for goods in transit which are valued at cost.
Cost of active materials, raw materials and packing materials is valued by using FIFO method.
Cost of work-in-progress and finished stocks are determined by using FIFO cost formula including allocation of
manufacturing overheads related to bringing the inventories to their present condition. The Company uses standard cost
method for measurement of cost of finished goods.
2.10 Provisions and contingent liabilities
Provision
Provision is recognized in the financial statements in line with the BAS-37 “Provisions, Contingent Liabilities and Contingent
Assets” when
- the Company has a legal or constructive obligation as a result of past event;

- it is probable that an outflow of economic benefit will be required to settle the obligation; and
- a reliable estimate can be made of the amount of the obligation.
Contingent liability
A possible obligation depending on whether some uncertain future event occurs, or a present obligation but payment is not
probable or the amount cannot be measured reliably.

2.11 Workers’ Profit Participation Fund (WPPF)
The Company has created a Workers’ Profit Participation and Welfare Fund in compliance with “The Bangladesh Labour Act,
2006” and 5% of profit before charging such expenses is transferred to this fund.
2.12 Income tax expenses

Income tax expenses comprise current and deferred tax. Income tax expense is recognized in the income statement except
to the extent that it relates to revaluation to property, plant and equipment which is recognized directly in equity.
2.12.1 Current tax

Current tax expense has been made on the basis of the Finance Act, 2015 and the Income Tax Ordinance, 1984.
2.12.2 Deferred tax

Deferred tax is recognized using the balance sheet method. Deferred tax arises due to temporary difference deductible or
taxable for the events or transactions recognized in the statement of profit or loss and other comprehensive income. A
temporary difference is the difference between the carrying amounts of assets and liabilities and its tax base amount in the
statement of financial position. Deferred tax asset or liability is the amount of income tax recoverable or payable in future
period(s) recognized in the current period. The deferred tax asset / income or liability / expense do not create a legal liability
/ recoverability to and from the income tax authority. Deferred tax also arises due to revaluation of property, plant and
equipment. The resulting impact of deferred tax assets / liabilities on revaluation surplus is included in the statement of
changes in equity.
2.13 Employees’ benefit plan
2.13.1 Defined contribution plan

The Company operates a recognized provident fund scheme where employees contribute 8.33% up to 5 years and over 5
years 10% of their basic salary with equal contribution by the Company. The provident fund is being considered as defined
contribution plan being managed by a Board of Trustees.
2.13.2 Defined benefit plan (Gratuity scheme)

The Company had operated an unfunded gratuity plan till 29 December 2015 and thereafter, effective from 30 December
2015, the scheme has been converted to a funded one. Employees are entitled to get gratuity benefit after completion of
minimum seven years of service with the Company. The gratuity is calculated on the last drawn basic pay and is payable at
the rate of one month’s basic pay for every completed year of service while one and half months’ basic pay for more than ten
years of service. Actuarial valuation of the fund is to be done in due course.
2.13.3 Group insurance scheme

The Company operates a group insurance scheme for its permanent employees.
2.14 Revenue
Revenue is recognized upon invoicing the customers for goods sold and delivered net off returns, allowances and trade
discounts.
Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the
buyer, the Company has no managerial involvement of ownership of the goods, the amount of revenue and the cost of the
transaction can be measured reliably and it is probable that the economic benefit associated with the transactions will flow to
the Company.
2.15 Foreign currency transactions

Foreign currency transactions are accounted for at exchange rate prevailing on the date of transaction. Monetary assets and
liabilities denominated in foreign currencies at reporting date are translated at rates ruling at the statement of financial
position date. All exchange differences are charged/ credited to the statement of profit or loss and other comprehensive
income.
2.16 Earnings per share (EPS)

The Company represents basic earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated as the profit
or loss attributable to the ordinary shareholders of the Company divided by the weighted average number of ordinary shares
outstanding during the year.
Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average
number of ordinary shares outstanding, for the affects of all dilutive potential ordinary shares. However, dilution of EPS is not
applicable for these financial statements as there was no potential dilutive ordinary share during the relevant periods.
2.17 Segment reporting

As there is a single business and geographic segment within which the Company operates, no segment reporting is felt
necessary.
•58
2.18 Financial risk management
Renata Limited’s activities expose it to a variety of financial risks and those activities involve the analysis, evaluation,
acceptance and management of some degree of risk or combination of risks. Taking risk is core to the financial business, and
operational risks are an inevitable consequence of being in business. Renata Limited’s aim is therefore to achieve an
appropriate balance between risk and return and minimize potential adverse effects on Renata Limited’s financial
performance.
Renata Limited’s risk management policies are designed to identify and analyze these risks, to set appropriate risk limits and
controls, and to monitor the risks and adherence to limits by means of reliable and up-to-date information systems. Renata
Limited regularly reviews its risk management policies and systems to reflect changes in markets, products and emerging
best practices.
2.18.1 Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The senior management of Renata Limited carefully manages its exposure to credit risk. Credit exposures
arise principally in receivables from customers into Renata Limited’s asset portfolio. The credit risk management and control
are controlled through the credit policies of Renata Limited which are updated regularly. The Company is also exposed to
other credit risks arising from balances with banks which are controlled through board approved counterparty limits.
2.18.2 Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable
price.
The Company's approach toward managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company's reputation. Typically, management ensures that it has sufficient cash and cash equivalents to
meet expected operational expenses, including the servicing of financial obligations through preparation of the cash forecast
prepared based on time line of payment of the financial obligations and accordingly arrange for sufficient liquidity/fund to
make the expected payments within due date.
2.18.3 Market risk

Renata Limited takes on exposure to market risks, which is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market prices. Market risks arise from open positions in interest rate and
currency, all of which are exposed to general and specific market movements and changes in the level of volatility of market
rates or prices such as interest rates, credit spreads and foreign exchange rates.
a. Currency risk
The Company is exposed to currency risk on certain receivables and payables such as receivables from foreign
customers and payables for import of raw materials, machinery and equipments. The majority of the Company’s
foreign currency transactions is denominated in US Dollar and relates to procurement of raw materials, machinery and
equipments from abroad.
b. Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. Interest rate risk is the risk that the value of a financial instrument will fluctuate because of
changes in market interest rates. Renata Limited takes on exposure to the effects of fluctuations in the prevailing levels
of market interest rates on both its fair value and cash flow risks. Interest margins may increase as a result of such
changes but may reduce losses in the event that unexpected movements arise.
3. Basis of preparation of financial statements
3.1 Basis of measurement

The financial statements have been prepared under the historical cost convention as modified to include the revaluation of
certain fixed assets which are stated at revalued amount. Accordingly, historical cost is employed to determine the monetary
amounts at which the elements of the financial statements are to be recognized and carried in the statement of financial
position and statement of profit or loss and other comprehensive income.
3.2 Reporting framework and compliance thereof

The financial statements have been prepared in compliance with the requirements of the Companies Act 1994, the Securities
& Exchange Rules 1987, the Listing Regulations of Dhaka Stock Exchange (DSE) and other relevant local laws as
applicable, and in accordance with the applicable Bangladesh Financial Reporting Standards (BFRSs) including Bangladesh
Accounting Standards (BASs) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) based on
International Financial Reporting Standards (IFRSs) and International Accounting Standards (IASs).

3.3 Functional and presentation currency
These financial statements are prepared in Bangladesh Taka (Taka / Tk.), which is the Company's functional currency. All
financial information presented in Taka has been rounded off to the nearest Taka.
3.4 Reporting period

The financial period of the Company covers one year from 1 January to 31 December consistently.
3.5 Comparative information and rearrangement thereof

Comparative figures have been re-arranged where considered necessary to ensure better comparability with the current
period without causing any impact on the profit and value of assets and liabilities as reported in the financial statements.
3.6 Use of estimates and judgments

Bangladesh Financial Reporting Standards (BFRSs) require management to make judgments, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses, and
disclosure requirements for contingent assets and liabilities during and at the date of the financial statements.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions of accounting estimates are recognized in the period in which the estimate is revised and in any future periods
affected as required by BAS-8 “Accounting Policies, Changes in Accounting Estimates and Errors”.
In particular, significant areas of uncertainty and critical judgments in applying accounting policies that have the most
significant effect on the amounts recognized in the financial statements include depreciation, inventory valuation, accrued
expenses and other payables.
3.7 Going concern

The Company has adequate resources to continue in operation for foreseeable future. For this reason, the directors continue
to adopt going concern basis in preparing the financial statements. The current credit facilities and resources of the Company
provide sufficient fund to meet the present requirements of its existing businesses and operations.
3.8 Statement of cash flows

The statement of cash flows has been prepared in accordance with the requirements of BAS-7 “Statement of Cash Flows”.
The cash generating from operating activities has been reported using the Direct Method as prescribed by the Securities and
Exchange Rules, 1987 and as the benchmark treatment of BAS-7 whereby major classes of gross cash receipts and gross
cash payments from operating activities are disclosed.
3.9 Related party disclosures

The Company carried out a number of transactions with related parties in the normal course of business and on an arms’
length basis. The information as required by BAS-24 “Related Party Disclosures” has been disclosed in a separate note to
the financial statements.
3.10 Events after the reporting period

In compliance with the requirements of BAS-10 “Events after the Reporting Period”, post statement of financial position
events that provide additional information about the Company’s position at the statement of financial position date are
reflected in the financial statements and events after the statement of financial position date that are not adjusting events are
disclosed in the notes when material.
3.11 Date of authorization for issue of the financial statements

On 30 April 2015, the Board of Directors reviewed the financial statements and authorized for issue.
3.12 Directors’ responsibility statement

The Board of Directors takes the responsibility for the preparation and fair presentation of these financial statements.
4 Preparation and presentation of the financial statements of the Company and its subsidiaries
The Board of Directors of respective companies is responsible for the preparation and presentation of the financial
statements of Renata Limited and its subsidiaries. Renata Limited has three subsidiaries incorporated in Bangladesh.
•60
5. Property, plant and equipment - at cost / revaluation less accumulated depreciation Amount in Taka
COST/REVALUATIONS DEPRECIATION
Written down
Particulars Balance as at Additions Disposal/ Balance as at Balance as at Charge Disposal/ Balance as at value as at
Rate
1 January during adjustment 31 December 1 January for adjustment 31 December 31 December
2015 the year during the year 2015 % 2015 the year during the year 2015 2015
Freehold land:
At cost 990,844,930 10,810,245 - 1,001,655,175 - - - - 1,001,655,175
On revaluation 179,132,078 - - 179,132,078 - - - - 179,132,078
1,169,977,008 10,810,245 - 1,180,787,253 - - - - 1,180,787,253
Buildings
At cost 2,667,025,559 232,906,369 - 2,899,931,928 1.54-5 240,927,025 87,154,498 - 328,081,523 2,571,850,405
On revaluation 41,291,251 - - 41,291,251 1.54-5 11,786,903 635,885 - 12,422,788 28,868,463
2,708,316,810 232,906,369 - 2,941,223,179 252,713,928 87,790,383 - 340,504,311 2,600,718,868
Plant and machinery 5,508,269,163 763,430,166 - 6,271,699,329 5 - 20 1,267,962,186 384,671,464 - 1,652,633,650 4,619,065,679
Automobiles 176,923,627 54,642,912 8,205,000 223,361,539 25 139,195,983 22,638,982 8,205,000 153,629,965 69,731,574
Office equipment 235,163,571 32,998,104 - 268,161,675 10 - 12.5 105,849,756 23,318,805 - 129,168,561 138,993,114
Furniture and fixtures 104,452,171 23,659,869 - 128,112,040 10 30,687,936 10,858,450 - 41,546,386 86,565,654
Total 2015 9,903,102,350 1,118,447,665 8,205,000 11,013,345,015 1,796,409,789 529,278,084 8,205,000 2,317,482,873 8,695,862,142
Total 2014 7,741,963,977 2,164,918,373 3,780,000 9,903,102,350 1,393,780,460 406,206,829 3,577,500 1,796,409,789 8,106,692,561
5.1 Initially recognised value of fully depreciated assets included in property, plant and equipment
is as follows:
2015 2014
Taka Taka
Buildings 4,448,824 4,448,824

Plant and machinery 203,373,296 167,727,798
Automobiles and trucks 113,420,555 86,517,655
Office equipment 57,812,931 33,395,073
Furniture and fixtures 7,729,227 3,802,352
386,784,833 295,891,702
5.2 The freehold lands of the Company measuring 197.859 acres are located at:
Mirpur, Dhaka 12.000 acres 12.000 acres
Pekua, Cox's Bazar 45.340 acres 45.340 acres
Barisal Sadar 0.290 acres 0.290 acres
Gondogram, Bogra 0.270 acres 0.270 acres
Lakshimipur, Rajshahi City Corporation. 0.149 acres 0.149 acres
Dogri Rajendrapur, Gazipur 16.763 acres 16.763 acres
Kashor Gore, Bhaluka, Mymensing 27.596 acres 27.596 acres
Sagordighi, Tangail 13.805 acres 13.805 acres
Siddikhali, Tangail 1.050 acres 1.050 acres
Ghatail, Tangail 13.234 acres 13.234 acres
Dhamsur, Bhaluka, Mymensingh 26.370 acres 26.370 acres
Turag, Dhaka 0.660 acres 0.660 acres
Sreepur, Gazipur 13.830 acres 13.830 acres
Keranigonj, Dhaka 0.590 acres 0.590 acres
Faridpur 0.410 acres 0.410 acres
Feni 0.365 acres 0.365 acres
Chatropur, Mymensingh 0.558 acres 0.558 acres
Phulbaria, Mymensingh 8.503 acres 8.503 acres
Mymensingh Depot 0.035 acres 0.035 acres
Sylhet Depot 0.483 acres 0.483 acres
Bogra Depot 0.645 acres 0.645 acres
Lohaboy, Bhaluka 4.463 acres 4.463 acres
Narangi, Bhaluka 6.605 acres 6.605 acres
Comilla Depot 0.580 acres 0.580 acres
Salna, Purabari 0.307 acres 0.307 acres
Sathkhamair, Sreepur 2.154 acres 0.120 acres
Dinajpur Depot 0.803 acres 0.803 acres
197.859 acres 195.825 acres
2015 2014
5.3 Depreciation for the year has been charged to: Taka Taka
Cost of goods sold - Non-tax holiday units (Note-29.2) 395,397,752 289,091,853
Cost of goods sold - Tax holiday units (Note-29.2) 77,580,088 68,269,321
472,977,840 357,361,174
Administrative, selling and distribution expenses (Note-30) 56,300,244 48,845,655
529,278,084 406,206,829
5.4 The freehold land and buildings were revalued by a firm of professional valuers in the year 1995 and the increase in net
carrying amount as a result of revaluation was shown as addition / valuation in that year.
5.5 Gain on disposal of property, plant and equipment

Amount in Taka
Original Accumulated Net book Sale Gain
cost depreciation value proceeds
2015 2014
8,205,000 8,205,000 - 3,575,000 3,575,000 1,285,775
6. Capital work in-progress 2015 2014

Taka Taka
Opening balance 857,479,062 2,026,083,847
Add : Additions during the year 726,375,370 996,313,589
1,583,854,432 3,022,397,436
Less: Capitalized as property, plant and equipment (Note-6.1) 860,589,018 2,164,918,374
723,265,414 857,479,062
This represents mainly construction of buildings for Bogra Depot, Mymensingh Depot, Rajendrapur Power Substation,
Bhaluka Power Substation, ERP project, installation of plant and machinery, their components and other fixed assets
procured from foreign and local vendors.
6.1 The break down of capitalised property, plant and equipment is as follows:
Freehold land 10,377,868 70,280,733

Buildings 226,314,316 614,999,524
Plant and machinery 581,273,896 1,372,927,058
Automobiles 26,234,885 27,201,072
860,589,018 2,164,918,373
7. Investment in subsidiaries
Separate Financial Statements as per BAS-27 "Consolidated and Separate Financial Statements" are to enhance the
relevance, reliability and comparability of the information that a parent entity provides in its separate financial statements for
a group of entities under its control. An entity must disclose the information to enable users of the financial statements to
evaluate the nature of the relationship between the entity and its subsidiaries.
No. of shares
Renata Agro Industries Limited (Note-7.1) 419,949 60,570,476 60,570,476

Purnava Limited (Note-7.2) 24,999 2,499,900 2,499,900
Renata Oncology Limited (Note-7.3) 7,999,900 79,999,000 79,999,000
8,444,848 143,069,376 143,069,376
•62
7.1 Investment in subsidiary company - Renata Agro Industries Limited
Renata Limited has aquired 99.99% equity interest in Renata Agro Industries Limited (419,949 ordinary shares of Tk.
60,570,476) on 7 April 2001. An amount of Tk. 60,570,476 as purchase cost of shares issued against acquisition of this
subsidiary has been shown as investment in subsidiary at cost as per BAS-27. Renata Limited and Renata Agro Industries
Limited have been operating under common control.
7.2 Investment in subsidiary company - Purnava Limited

Renata Limited has aquired 99.99% equity interest in Purnava Limited (24,999 ordinary shares of Tk. 100 each) on 16
September 2004. An amount of Tk. 2,499,900 being face value of shares issued against acquisition of this subsidiary has
been shown as investment in subsidiary at cost as per BAS-27. Renata Limited and Purnava Limited have been operating
under common control.
7.3 Investment in subsidiary company - Renata Oncology Limited

Renata Limited has aquired 99.99% equity interest in Renata Oncology Limited (7,999,900 ordinary shares of Tk. 10 each)
on 12 August 2012. An amount of Tk. 79,999,000 being face value of shares issued against acquisition of this subsidiary has
been shown as investment in subsidiary at cost as per BAS-27. Renata Limited and Renata Oncology Limited have been
operating under common control.
8. Investment in shares
Market value Book value
2015 2014 2015
Details of the shares are given below:
Taka Taka Taka
SAFC Agro Biotech Limited 24,159,983 - 22,572,487

Square Pharma Limited 18,541,665 23,445,650 16,884,403
Khulna Power Company Limited 13,250,259 9,120,000 13,462,711
British American Tobacco Bangladesh Company Limited 9,589,125 8,700,900 8,700,900
Matin Spinning Mills Limited 12,240,281 8,170,500 13,386,583
NCC Bank Limited 1,539,538 - 1,690,635
IFAD Autos Limited 787,950 - -
Unique Hotel and Resorts Limited 3,036,000 - 3,785,858
First Security Islami Bank Limited 1,602,040 - 1,846,888
EXIM Bank Limited 3,151,711 3,698,131 3,698,131
Mercantile Bank Limited 1,598,580 - 2,009,897
Central Depository Bangladesh Limited (unquoted) 1,569,450 1,569,450 1,569,450
Pioneer Insurance Company Ltd. 1,120,625 1,223,750 1,223,750
Islami Bank Bangladesh Limited 156,486 133,407 133,407
People's Leasing Company Limited 16,045 24,684 24,684
BRAC Bank Limited 24,350 18,750 18,750
International Leasing & Finance Services Limited 7,644 11,760 11,760
United Commercial Bank Limited 2,194 2,528 2,528
Social Islami Bank Limited 734 719 719
Uttara Finance and Investments Limited - 2,996,000 -
MI Cement Factory Ltd. - 2,888,000 -
ICB Islami Bank Limited - 2,200,000 -
City General Insurance Limited - 1,894,596 -
Bangladesh Building Systems Limited (BBS) - 1,794,000 -
Heidelberg Cement Bangladesh Limited - 199,760 -
Lafarge Surma Cement Limited - 7,380,000 -
Titas Gas Transmission and Distribution Co. Limited - 5,658,700 -
Summit Purbanchol Power Company Limited (SPPCL) - 4,700,580 -
R N Spinning Mills Limited - 3,999,680 -
Delta Brac Housing Finance Corporation Ltd. (DBH) - 71,600 -
The City Bank Limited - 54,500 -
92,394,660 89,957,645 91,023,541

9. Inventories 2015 2014
Taka Taka
Finished goods
- Pharmaceutical 558,011,492 474,308,708
- Animal health 415,788,068 357,210,334
- Contract manufacturing 29,756,431 11,722,288
- Potent product facility 48,637,816 27,354,108
- Cepha facility 125,938,240 103,777,147
- Penicillin facility 41,093,198 41,848,540
1,219,225,245 1,016,221,125
Work-in-process 150,466,515 215,773,935
Raw materials 655,369,468 491,677,268
Bulk materials 705,741,044 538,579,721
Packing materials 347,244,067 194,472,977
Consumable stores, spares and reagent materials 107,910,128 66,881,749
Stock in transit 257,461,650 285,486,112
3,443,418,118 2,809,092,887
Less : Provision for obsolete inventories (69,143,866) (48,327,417)
3,374,274,252 2,760,765,470
As the Company deals in large number of items which vary in units, item-wise quantity statement of inventories could not be
given.
10. Trade receivables

Trade receivables - unsecured (Note - 10.1) 1,808,375,477 1,415,666,932
Less : Allowance for doubtful receivables (57,485,593) (58,562,631)
1,750,889,884 1,357,104,301
10.1 Trade receivables disclosure as per Schedule-XI, Part-I, of the Companies Act, 1994
Receivables due below six months 1,666,255,884 1,254,659,842
Receivables due over six months 142,119,593 161,007,090
1,808,375,477 1,415,666,932
Trade receivables include Tk. 6,856,950 due from Renata Agro Industries Limited.
11. Other receivables

Inter-company receivables
- Renata Agro Industries Limited 3,276,359 3,944,592
- Purnava Limited 129,125,902 61,354,495
- Renata Oncology Limited 319,418,808 237,584,316
Value Added Tax (VAT) recoverable 254,286,634 235,599,805
Others 18,554,792 18,212,964
724,662,495 556,696,172
•64
12. Advances, deposits and prepayments 2015 2014
Taka Taka
Advances
Loan to employees against motorcycle 67,239,786 56,683,536
Loan to employees against scooter 3,726,000 4,947,194
Loan to employees against salary 20,142,774 18,660,221
Advance for house rent 7,365,000 5,845,743
Advance VAT 70,450,929 73,111,337
Advance for inventory 11,579,002 2,418,597
Advance to field force 12,092,250 11,371,000
Advance to staff against expenses 9,631,736 11,882,770
Advance to staff against petty expenses 646,000 646,000
Advance against tour expenses 3,149,305 5,513,500
206,022,782 191,079,898
Deposits
Tender deposits 7,793,616 10,749,613
Security deposit to Linde Bangladesh Limited 540,000 540,000
Security deposit to G4S Security Services Bangladesh (P) Ltd. 946,650 946,650
Titas Gas Transmission and distribution Co. Limited 345,561 345,561
Dhaka Electric Supply Co. Limited 2,310,000 2,310,000
Meghna Model Service Center 110,000 110,000
Mymensingh Palli Biddut Samity 11,872,000 11,872,000
Radisson Water Garden Hotel 200,000 200,000
Gazipur Palli Bidyut Samity 10,248,000 -
Bangladesh Customs House, Dhaka Airport 200,000 -
Bangladesh Power Development Board, Sylhet 90,000 -
Bangladesh Power Development Board, Comiilla 40,000 -
Bangladesh Petroleum Exploration & Production Co. Ltd. 7,000 7,000
Dhaka Medical College & Hospital 1,540 1,540
Bangladesh Power Development Board (BPDB) - 52,000
Miscellaneous deposits 260,500 260,500
34,964,867 27,394,864
Prepayments
Insurance premium 1,220,396 1,047,434
Miscellaneous 274,400 274,650
1,494,796 1,322,084
242,482,445 219,796,846
13 Loan to Renata Agro Industries Limited

Opening balance 150,000,000 140,000,000
Add: Payment during the year - 10,000,000
150,000,000 150,000,000
Less: Received during the year 50,000,000 -
100,000,000 150,000,000
Some loans obtained by the Company from the banks were utilized by its subsidiary namely Renata Agro Industries Limited.
The actual interest expenses incurred on these loans are charged to the subsidiary proportionately.

2015 2014
14. Cash and cash equivalents Taka Taka
Cash in hand 2,025,000 1,725,000
Cash at bank
Current accounts with:

Standard Chartered Bank 133,194,068 68,520,476
The Hongkong and Shanghai Banking Corporation Limited 60,297,757 99,424,558
Agrani Bank Limited 19,363,999 45,248,842
Sonali Bank Limited 10,720,521 9,550,053
One Bank Limited 2,993 6,227,690
Bank Asia Limited 17,799,070 8,920,761
Prime Bank Limited 1,457,246 1,175,277
Eastern Bank Limited 23,280,372 8,833,370
United Commercial Bank Limited 1,328,707 2,349,708
267,444,733 250,250,735
Balance with City Bank Capital Resources Limited 21,404,503 31,561
290,874,236 252,007,296
15. Share capital 2015 2014

Taka Taka
Authorized share capital
100,000,000 ordinary shares of Tk.10 each 1,000,000,000 1,000,000,000
Issued, subscribed and paid up capital

1,294,260 ordinary shares of Tk.10 each issued for cash 12,942,600 12,942,600
1,724,490 ordinary shares of Tk.10 each issued for consideration other than cash 17,244,900 17,244,900
49,934,764 ordinary shares (41,109,179 ordinary shares in 2014) of Tk.10 each
issued as bonus shares 499,347,640 411,091,790
529,535,140 441,279,290
These shares are listed with Dhaka Stock Exchange Limited and quoted at Tk. 1,233.10 per share on 31 December 2015.
At 31 December 2015, the shareholding position of the Company was as follows:
Nationality/ Number of Face value % of total

Name of the shareholders Incorporated in shares Taka shareholdings
Sajida Foundation Bangladesh 27,006,065 270,060,650 51%

Business Research International Corp. Inc. Panama 11,535,451 115,354,510 22%
ICB Unit Fund Bangladesh 1,602,849 16,028,490 3%
Investment Corporation of Bangladesh Bangladesh 2,453,980 24,539,800 5%
First ICB Mutual Fund Bangladesh 674,912 6,749,120 1%
Bangladesh Fund Bangladesh 538,158 5,381,580 1%
Shadharan Bima Corporation Bangladesh 2,316,702 23,167,020 4%
Other shareholders Bangladesh & others 6,825,397 68,253,970 13%
52,953,514 529,535,140 100%
•66
Classification of shareholders by holdings:
2015
No. of No. of
shareholders shareholders No. of total No. of % of total
Holdings as per folio as per BOID shareholders share holdings shareholdings
Less than 500 shares 171 2,819 2,990 338,885 1%

501 to 5000 shares 59 723 782 1,174,114 2%
5,001 to 10,000 shares 14 62 76 543,819 1%
10,001 to 20,000 shares 19 48 67 919,899 2%
20,001 to 30,000 shares 2 18 20 479,602 1%
30,001 to 40,000 shares - 13 13 453,401 1%
40,001 to 50,000 shares 2 9 11 496,260 1%
50,001 to 100,000 shares - 8 8 604,191 1%
100,001 to 1,000,000 shares 1 11 12 3,838,839 7%
Over 1,000,000 shares 2 3 5 44,104,504 83%
270 3,714 3,984 52,953,514 100%
16. Revaluation surplus

The freehold land and buildings were revalued by a firm of professional valuers in the year 1995 and the resulting increase
of value of Tk. 220,423,329 has been shown as revaluation surplus. BAS 16, Paragraph 34 requires that a periodical
revaluation is to be carried out at regular interval if the property price is volatile/significantly differs. It has been seen that for
last few years, the property prices are showing downtrend and no significant difference is expected. However, the
management contemplates to review this matter and undertakes such valuation exercise shortly. The breakup of revaluation
surplus is as follows:
2015 2014
Taka Taka
Land 179,132,078 179,132,078
Buildings 29,504,348 30,140,233
208,636,426 209,272,311
Less: Depreciation charged during the year on revalued buildings 635,885 635,885
208,000,541 208,636,426
Less: Adjustment of deferred tax on revaluation surplus 51,480,134 51,637,515
156,520,407 156,998,911
17. Tax holiday reserve

Opening balance 296,337,069 249,496,624
Add: Provision made during the year 18,690,370 46,840,445
Closing balance 315,027,439 296,337,069
Tax holiday reserve has been created using appropriate rate (40%) of income as prescribed in the Income Tax Ordinance,
1984. The Company has been granted tax holiday by the National Board of Revenue for a period of five years for Cepha and
Penicillin unit for the period from 1 February 2010 to 31 January 2015 and 1 February 2011 to 31 January 2016 respectively.
18. Retained earnings

Opening balance 6,842,987,470 5,531,352,939
Profit for the year 2,006,641,464 1,710,862,526
Tax holiday reserve (18,690,370) (46,840,445)
Stock dividend issued (88,255,850) (88,255,860)
Cash dividend paid (353,023,432) (264,767,575)
Depreciation adjustment on revalued assets 635,885 635,885
8,390,295,168 6,842,987,470

19. Deferred liability - staff gratuity
2015, the scheme has been converted to a funded one. Provision for gratuity is charged to profits annually to cover
obligations under the scheme on the basis of an estimate made by the management of the Company to maintain full
provision at the financial position date as per BAS-37 "Provisions, Contingent Liabilities and Contingent Assets". However,
the entire amount of gratuity has been transferred to the fund by 31 December 2015.
2015 2014
Taka Taka
Opening balance 200,269,510 202,530,242
Add : Provision made during the year 108,463,763 10,966,834
308,733,273 213,497,076
Less : Transferred/paid during the year 308,733,273 13,227,566
Closing balance - 200,269,510
20. Deferred tax liabilities

Opening balance 545,897,110 473,840,609
Add : Addition during the year (expense) 210,048,082 72,213,883
755,945,192 546,054,492
Less : Reduction of deferred tax on revaluation surplus (157,382) (157,382)
Closing balance 755,787,810 545,897,110
Deferred tax liability has been recognized in accordance with the provision of BAS-12 "Income Taxes" based on temporary
differences arising due to difference in the carrying amount of the assets or liabilities and its tax base.
Carrying amount Taxable/(deductible)

on balance temporary
sheet date Tax base difference
Taka Taka Taka
For the year ended 31 December 2015

Property, plant and equipment - (excluding land) 6,575,088,741 3,631,389,757 2,943,698,984
Revaluation surplus 208,000,541 - 208,000,541
6,783,089,282 3,631,389,757 3,151,699,525
Provision for obsolete inventories (69,143,866) - (69,143,866)
Provision for doubtful debts (59,404,418) - (59,404,418)
Temporary difference 3,023,151,241
Applicable tax rate 25%
Deferred tax liability as on 31 December 2015 755,787,810
209,890,700
Reduction of deferred tax on revaluation surplus 157,382
Deferred tax expense for the year ended 31 December 2015 210,048,082

6,167,242,484 3,652,519,313 2,514,723,171
Provision for gratuity (200,269,510) - (200,269,510)
Taxable temporary difference 2,205,644,787
Applicable tax rate 24.75%
72,056,501
•68
21. Long term loan - net off current portion 2015 2014
Taka Taka
Standard Chartered Bank - 380,000,000

The Hongkong and Shanghai Banking Corporation Limited (Note - 21.1) 485,914,995 638,410,498
485,914,995 1,018,410,498
Less : Current portion
157,000,003 235,900,003
328,914,992 782,510,495
21.1 The Hongkong and Shanghai Banking Corporation Limited
Details of facility:
Facility limit : USD 6,811,696.
Validity : Up to 18 November 2018.
Terms of repayment : Twenty equal quarterly installments commencing from February 2014.
Nature of security : i) Registered mortgage over 376.87 decimals industrial land in Rajendrapur where Cepha, Penicillin,
and Bottle sheed are situated.
ii) First Charge over all the present and future inventories, trade receivables, receivables claims,
contracts, bills, plant, machinery and equipment of the Renata Limited.
22. Short term bank loan and overdraft 2015 2014

Taka Taka
Short term bank loan
Eastern Bank Limited (Note-22.1) 10,725,333 405,363,955
The Hongkong and Shanghai Banking Corporation Limited (Note-22.2) 1,155,433,187 780,484,609
The City Bank Limited (Note-22.3) 2,597,657 46,481,192
Standard Chartered Bank (Note-22.4) 1,180,191,182 223,468,102
Citibank N. A. (Note-22.5) 113,049,101 229,720,338
Bank Asia Limited (Note-22.6) 249,335,263 424,327,194
Commercial Bank of Ceylon PLC (Note-22.7) 373,984,451 612,169,142
3,085,316,174 2,722,014,532
Overdraft
The Hongkong and Shanghai Banking Corporation Limited (Note-22.2) 68,138,814 70,569,287
Standard Chartered Bank (Note-22.4) 8,404,455 25,496,215
Citibank N. A. (Note-22.5) 9,803,112 739,644
148,180,045 599,400,222
3,233,496,219 3,321,414,754

The terms and conditions of the facility available for (Overdraft, Acceptance, LATR, Revolving, import and Demand loan) are
as follows:
22.1 Eastern Bank Limited
Overdraft
Purpose : To finance overhead cost and duty payment.
Facility limit : Tk. 100 million.
Repayment : Within 365 days from the date of disbursement.
Letter of credit/ Acceptance (Sight/ Usance)

Purpose : To import plant and machinery.
Facility limit : Combined Tk. 650 million.
Import finance
Purpose : To import raw materials.
Security
i) First charge over all present and future inventories and trade receivable of Renata Limited under pari-passu security
sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited jointly as above.
iii) Registered hypothecation by way of pari passu with RJSC on entire inventory book debts and other floating assets and
plant and machinery of the Company in favor of Eastern Bank Limited.
Import loan (IMP01 and IMP02)

Purpose : To import raw materials, plant & machinery and spare on sight and deferred basis.
Facility limit : Combined Tk. 2,150 million.
Repayment : Within 180 / 360 days from the date of disbursement.
Import cash limit (IMC01 and IMC02)

Purpose : To release deferred documents against borrowers' acceptance.
Short term loan (LNL01)

Purpose : To finance VAT, duty, and regulatory payments.
Overdraft (O/D01)
Purpose : To meet overhead expense and to facilitate purchase of materials from local sources.
Repayment : On demand.
Security
sharing agreement.
•70
22.3 The City Bank Limited
Letter of credit/ Acceptance (Sight / Usance)
Purpose : To import API, excipient, packing materials and finished materials.
Import finance
Purpose : To retire sight Letter of credit documents opened for procurement API, excipient, packing materials
and finished materials.
Repayment : Within 180/150 days from the date of disbursement.
Short term loan

Purpose : For payment of duty and other charges related to import and VAT.
Overdraft
Purpose : To meet the day to day operating, promotional, and marketing expenses.
Security
sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited with RJSC on pari passu security sharing
basis with the existing lenders.
22.4 Standard Chartered Bank

Letter of credit
Purpose : To open letter of credits for import of raw materials, packing materials, capital machinery, spares and
other items required for regular course of business.
Loan against Trust Receipt (LATR)

Purpose : Retirement of documents of only sight letter of credits.
Overdraft
Purpose : For working capital purposes.
Repayment : Overdraft to be cleaned up for 4 days in one year.
Acceptance
Purpose : To provide acceptance against letter of credits issued by the bank.
Security
sharing agreement.

22.5 Citibank N. A.
Facility limit : Combined USD 7,020,000.
Repayment : Within 180/ 360 days from the date of disbursement.
Import finance
Purpose : To refinance import letter of credits.
Short term loan

Purpose : To finance local purchase of active and raw materials, packing materials, capital machinery, spares
and other items required for regular course of business.
Overdraft
Purpose : To finance regular selling, general and administrative expenses.
Facility limit : Combined USD 980,000.
Cheque purchase/ Cash management line

Purpose : To facilitate the cash management funds of day 0 or day 1.
Security
sharing agreement.
22.6 Bank Asia Limited

Revolving letter of credit
Purpose : To import raw materials, machineries and spare parts for the Company.
Revolving LATR
Overdraft
Purpose : To payment of duty VAT, taxes and operating expenses.
Revolving demand loan

Purpose : For procurement of pharmaceuticals and packing materials from local sources.
Security
sharing agreement.
•72
22.7 Commercial Bank of Ceylon PLC
Facility limit : Tk. 1,500 million.

Security
sharing agreement.
2015 2014
23. Trade payables Taka Taka
Local purchase 240,267,290 106,814,460

Toll manufacturing charges - (Ziska, Sharif and NAFCO) 6,843,986 5,290,133
Payables for consumable - plant 16,390,000 12,610,979
263,501,276 124,715,572
24. Cost accruals

Leave encashment 168,890,394 143,317,191
Sales incentive 148,944,055 109,210,902
Performance bonus 56,414,621 45,135,622
Prescription bonus 85,967,719 7,359,525
Recreation allowance 11,441,165 3,093,755
Annual bonus 104,243,919 44,028,379
Leave fare assistance 1,557,369 1,550,860
Leave incentive 25,030,901 6,531,178
Interest expenses 16,539,918 33,360,030
Legal expenses 6,951,415 4,734,904
Professional expenses 706,250 600,000
Family day expenses 21,783,290 5,000,010
Field force expenses 14,952,738 14,147,850
663,423,754 418,070,206

25. Provisions and other liabilities 2015 2014
Taka Taka
Provisions
Meeting expenses 56,028,925 33,081,170
Final settlement of employees 344,985 19,738,986
56,373,910 52,820,156
Other liabilities
Workers’ profit participation fund 314,917,811 249,127,687
Workers’ welfare fund 31,244,771 15,073,069
VAT Payable 107,030,084 107,030,084
Withholding Tax 5,037,979 2,214,198
Export commission payable 28,312,339 15,045,099
PF Trustee 6,563,266 2,941,866
Royalty payable 9,511,330 7,718,791
Grant from GAIN 537,958 -
Withholding VAT - 32,924
Advance against sales - 23,697,454
504,109,707 423,553,254
560,483,617 476,373,410
Unresolved VAT cases claimed by the VAT authority amounting to Tk. 107,030,084 for which appeals are pending with the
Hon'ble High Court Division of the Supreme Court and VAT Appellate Tribunal although during the year a liability has been
provided in the financial statements considering the probable unfavorable merit of the cases.
26. Unclaimed dividend
Unclaimed dividend upto 4 years 9,573,747 8,415,370

Unclaimed dividend above 4 years 7,487,670 4,548,528
17,061,417 12,963,898
27 Provision for taxation
Opening balance 624,740,709 370,595,092

Add: Provision made during the year 514,822,787 547,846,534
1,139,563,496 918,441,626
Less: Payment made during the year 387,317,277 293,700,917
Closing balance 752,246,219 624,740,709
•74
28. Turnover Amount in Taka
2015 2014
Gross Turnover Turnover

Turnover Less: VAT (net) (net)
Non-tax holiday units:

Pharmaceutical products 9,479,325,938 1,222,041,555 8,257,284,383 6,671,924,022
Animal health products 2,649,970,415 240,809,403 2,409,161,012 1,832,020,036
Contract manufacturing 934,167,332 67,179,847 866,987,485 1,287,494,061
13,063,463,685 1,530,030,805 11,533,432,880 9,791,438,119
Tax holiday units :
Cepha Facility 1,315,171,297 267,186,687 1,047,984,610 1,081,934,251
Penicillin Facility 356,565,391 57,025,453 299,539,938 233,908,890
1,671,736,688 324,212,140 1,347,524,548 1,315,843,141
14,735,200,373 1,854,242,945 12,880,957,428 11,107,281,260
During the year, sale of pharmaceuticals products includes export sales of Tk. 695,417,654 equivalent to USD 8,915,872.
29. Cost of goods sold Amount in Taka

2015 2014
Non-tax Tax holiday Units
holiday Cepha Penicillin Total Total
Units Facility Facility
Raw materials consumed- (Note-29.1) 3,468,446,606 272,806,826 82,504,785 3,823,758,217 3,437,419,077
Factory overhead - (Note-29.2) 1,876,805,593 352,430,773 158,111,199 2,387,347,564 1,626,345,748
Manufacturing costs 5,345,252,199 625,237,599 240,615,984 6,211,105,781 5,063,764,825
Add : Opening work-in-process 168,312,260 47,461,675 - 215,773,935 282,351,925
5,513,564,459 672,699,274 240,615,984 6,426,879,716 5,346,116,750
Less : Closing work-in-process 92,785,971 44,095,959 13,584,585 150,466,515 215,773,935
Cost of goods manufactured 5,420,778,488 628,603,315 227,031,399 6,276,413,201 5,130,342,815
Add : Opening finished goods 870,595,439 103,777,147 41,848,540 1,016,221,126 1,021,106,806
Cost of finished goods 262,394,158 - - 262,394,158 283,742,911
Cost of goods available for sale 6,553,768,085 732,380,462 268,879,939 7,555,028,485 6,435,192,532
Less : Closing finished goods 1,052,193,807 125,938,240 41,093,198 1,219,225,245 1,016,221,126
5,501,574,278 606,442,222 227,786,741 6,335,803,240 5,418,971,406
Amount in Taka
29.1 Raw materials consumed
2015 2014
Non-tax Tax holiday Units
This is arrived at as follows: Units Facility Facility
Opening stock 1,107,015,296 91,003,438 26,711,232 1,224,729,966 756,381,039
Add : Purchase during the year 3,925,860,720 295,661,709 85,860,401 4,307,382,830 3,905,768,004
Total materials available 5,032,876,016 386,665,147 112,571,633 5,532,112,796 4,662,149,043
Less : Closing stock 1,564,429,410 113,858,321 30,066,848 1,708,354,579 1,224,729,966
Raw material consumed 3,468,446,606 272,806,826 82,504,785 3,823,758,217 3,437,419,077

29.2 Factory overhead Amount in Taka
2015 2014
Non-tax Tax holiday units
units Facility Facility
Salaries, wages and other benefits 455,745,325 94,267,589 18,488,294 568,501,208 352,366,578
Company's contribution to PF 4,683,858 679,600 16,897 5,380,355 4,443,070
Gratuity expenses 38,301,029 7,354,453 1,245,584 46,901,066 6,937,000
Electricity and fuel 354,539,781 113,897,596 65,308,186 533,745,563 420,530,849
Consumable stores and supplies 145,639,770 13,313,686 8,221,306 167,174,762 111,952,774
Insurance 6,644,147 442,966 87,000 7,174,113 6,923,407
Land revenue and taxes 2,769,048 721,310 275,774 3,766,132 3,347,148
Rent 4,491,581 549,729 311,840 5,353,150 4,554,250
Automobile expenses 13,545,101 1,790,135 729,153 16,064,389 13,335,025
Postage and telephone 8,358,997 1,701,063 846,954 10,907,014 5,181,259
Stationeries & Supplies 21,322,626 7,619,184 3,931,032 32,872,842 27,026,134
Uniforms for workers 6,800,534 1,940,547 1,129,149 9,870,230 8,706,846
Travelling and moving expenses 26,902,950 6,266,483 3,532,252 36,701,685 23,517,357
Repair and maintenance 281,524,159 35,055,508 22,105,687 338,685,354 179,382,925
Lunch, snacks and tea expenses 92,506,380 13,042,010 7,215,670 112,764,060 89,994,233
Depreciation 395,397,752 53,059,452 24,520,637 472,977,840 357,361,174
Other overhead expenses 17,632,555 729,462 145,784 18,507,801 10,785,719
1,876,805,593 352,430,773 158,111,199 2,387,347,564 1,626,345,748
29.3 Purchases, issues and stocks of raw materials

Purchases, issues and stocks of raw materials are of over 2,875 items involving production of 792 finished goods
formulations. The measurement is expressed in different units viz kilogram, activity, liter, pieces etc. In view of different units
in use, the following table has been presented in value only.
Amount in Taka
Opening Closing
Major material group stocks Purchase Consumtion stocks
Active materials 551,799,035 1,898,456,242 1,797,297,204 652,958,073
Raw materials 352,412,656 1,151,984,427 894,019,117 610,377,966
Packaging materials 202,803,605 875,420,051 777,130,285 301,093,371
1,107,015,296 3,925,860,720 3,468,446,606 1,564,429,410
Tax holiday units:
Cepha facility 91,003,438 295,661,709 272,806,826 113,858,321
Penicillin facility 26,711,232 85,860,401 82,504,785 30,066,848
117,714,670 381,522,110 355,311,611 143,925,169
1,224,729,966 4,307,382,830 3,823,758,217 1,708,354,579
Consumable stores 8,314,130 41,832,521 42,579,302 7,567,349

Maintenance stores and spares 58,567,619 78,397,810 36,622,650 100,342,779
66,881,749 120,230,331 79,201,952 107,910,128
1,291,611,715 4,427,613,161 3,902,960,169 1,816,264,707
•76
As per Part II of Schedule XI of the Companies Act 1994, the quantities of raw materials, purchases and stocks should be
expressed in quantitative denomination. However, this could not be provided as the Company deals with large number of
products both locally made and imported.
Materials available locally are procured from the local manufacturers. Materials are imported from the following countries
either directly from the manufacturers or suppliers approved by the Drug Administration:
India Japan Italy New Zealand

China Thailand Denmark Indonesia
Hong Kong South Korea Spain Argentina
Singapore United States of America (USA) Germany Brazil
Malaysia United Kingdom (UK) Austria Czech Republic
30. Administrative, selling and distribution expenses

Amount in Taka
2015 2014
Tax holiday Units
Non-tax Cepha Penicillin Total Total
holiday units Facility Facility
Salaries, wages and allowances 1,174,321,991 56,199,647 10,088,643 1,240,610,281 958,005,683

Contribution to provident fund 21,561,958 1,031,892 185,239 22,779,089 19,413,506
Gratuity expenses 58,273,279 2,788,790 500,628 61,562,697 4,029,834
Electricity and power 42,546,389 2,036,146 365,517 44,948,052 35,389,421
Rent, rates and taxes 36,116,682 1,728,440 310,280 38,155,402 33,303,391
Insurance 10,237,992 489,961 87,955 10,815,908 10,114,411
Travelling expenses 237,127,865 11,321,841 2,032,433 250,482,139 262,314,976
Repairs and maintenance 38,465,577 1,841,164 330,461 40,637,202 37,013,677
Legal and professional expenses 7,140,791 341,738 61,347 7,543,876 5,846,726
Provision for bad debts 10,040,707 480,519 86,260 10,607,486 21,852,734
Audit fee 810,000 - - 810,000 600,000
Directors' fees 400,000 - - 400,000 320,000
Membership fees & subscription 6,786,534 324,784 58,303 7,169,621 4,460,381
Meeting and corporate expenses 41,110,445 1,967,426 353,181 43,431,052 15,741,800
Sales promotion 321,012,844 15,256,557 2,758,211 339,027,612 303,991,079
Field expenses 623,429,193 29,835,513 5,355,902 658,620,608 530,610,402
Depreciation 56,300,244 - - 56,300,244 48,845,655
Stationery 40,848,695 1,954,900 350,933 43,154,528 38,997,474
Postage, telex, fax and telephone 32,824,974 1,570,908 282,001 34,677,883 31,854,586
Distribution freight 274,309,704 13,126,619 2,356,596 289,792,919 237,692,147
Lunch, snacks, tea and welfare expenses 113,341,223 5,424,183 973,720 119,739,126 92,477,823
Other overhead expenses 82,304,241 3,856,918 692,246 86,853,405 101,530,080
3,229,311,328 151,577,946 27,229,856 3,408,119,130 2,794,405,786

31. Other income
2015 2014
Taka Taka
Gain from sale of quoted shares 1,726,277 7,505,653
Scrap sales 3,127,266 5,796,630
Dividend income 3,229,458 2,448,177
Gain on disposal of property, plant and equipment (Note-5.5) 3,575,000 1,285,775
Interest income 1,249,657 -
12,907,658 17,036,235
32 Finance cost

Exchange loss 11,712,777 4,605,678
Bank charges 12,922,450 18,662,249
281,854,767 463,471,214
33 Basic earnings per share (EPS)
The computation of EPS is given below:

Earnings attributable to the ordinary shareholders (net profit after tax for the year) 2,006,641,464 1,710,862,526
Weighted average number of ordinary shares outstanding during the year (Note-33.1) 52,953,514 52,953,514
Basic earnings per share (EPS) 37.89 32.31
33.1 Weighted average number of shares outstanding during the year

2015
Taka
Opening number of shares 44,127,928
Bonus shares issued in June 2015 8,825,586
52,953,514
Last year's EPS has been adjusted as per the requirement of BAS-33 "Earnings Per Share"
34 Payments to directors and officers
The aggregate amount paid (except Directors' fees for attending board meetings) during the year to director and officers of the
Company is disclosed below as required by the Securities and Exchange Rules-1987:
Amount in Taka
Directors Officers
Remuneration 7,873,470 302,405,012

House rent 5,009,400 247,691,028
Bonus 3,280,613 124,204,094
Contribution to provident fund 787,347 27,372,097
Gratuity 984,184 107,479,578
Conveyance allowance and transport 1,535,100 147,258,102
Other welfare expenses 3,593,700 34,071,393
23,063,814 990,481,304
•78
34.1 During the year, no payment has been made to any non-executive directors for any special services rendered.
35 Contingent liabilities
35.1 There are contingent liabilities on account of unresolved disputed corporate income tax assessments involving tax claims by
the tax authority amounting to Tk. 25,266,780 for the assessment year 1998-99 to 2003-04; Tk. 10,713,160 for the
assessment year 2013-14 and Tk. 21,911,230 for the assessment year 2014-2015 for which appeals are pending with the
Commissioner of Taxes (Appeal) and the Hon'ble High Court Division of the Supreme Court.
35.2 The Assistant Commissioner of Taxes issued a notice vide letter No. SA-162/2014-2015/82 on 01 September 2014 claiming
that during the assessment year 2008-09 (income year 2007), the Company did not deduct VAT on certain accounting heads
amounting to Tk. 232,741,698 and tax file reopened accordingly under Section 93 of the Income Tax Ordinance, 1984. Total
tax amount was calculated Tk. 69,822,509 on that claimed amount by using the prevailing corporate tax rate 30%. However,
the Hon'ble High Court delivered the verdict in favour of the Company on 6 January 2016 but the National Board of Revenue
has made leave to appeal to the Supreme Court Appellate Division against the verdict.
35.3 The Value Added Tax Authority issued a notice vide letter No. 4/LTU-Mushak/Circle-5(29)Renata/631 on 28 January 2015
claimed that the Company did not pay VAT on Premix Products during 2009 to 2013 period and VAT claimed Taka
399,242,746 for the period. A writ petition to High Court was made against the mentioned claim and the High Court issued
stay order until disposal through its verdict.
36 Claims by the Company not acknowledged as receivable
None as at 31 December 2015.
37 Commitments
On the statement of financial position date, the Company is enjoying unfunded credit facilities from the following banks:
2015 2014
Taka Taka
Letters of credits (Note 37.1) 899,900,721 751,005,322
Outstanding guarantees issued by the banks 83,721,285 124,211,110
Capital expenditure commitments 72,090,419 -
1,055,712,425 875,216,432
37.1 Letters of credits

Limit
The Hongkong and Shanghai Banking Corporation Limited 1,660,000,000 287,164,990 164,638,253
Standard Chartered Bank 1,100,000,000 304,980,375 68,304,709
Eastern Bank Limited 550,000,000 2,700,143 36,819,250
The City Bank Limited 320,000,000 2,096,187 1,114,446
Citi Bank N.A. 768,000,000 16,186,797 195,227,087
Commercial Bank of Ceylon PLC 800,000,000 129,785,297 69,006,950
Bank Asia Limited 250,000,000 156,986,932 215,894,627
5,448,000,000 899,900,721 751,005,322
38 Dividend paid to non-resident shareholders
Dividend paid to non-resident shareholder, Business Research International Corp. Inc. during the year 2015 was Tk. 61,409,195
equivalent to US$ 785,384 for their 9,595,156 shares.
39 Disclosure as per requirement of Schedule XI, Part II of the Companies Act, 1994

39.1 Employee Position of the Renata Limited as per requirement of schedule XI, Part II, Para-3
The Company engaged 5,473 (5,002 in 2014) employees of which 3,770 (3,182 in 2014) is permanent employees and 1,703
(1,820 in 2014) is casual and temporary workers as required. All employees received total salary of above Tk. 36,000 per
annum.
39.2 Capacity utilization - single shift basis
Production capacity and current utilization as required by the Companies Act 1994, Schedule-XI, Para-7. The Company
operates multi-products plants. As a result plant utilization is not comparable with capacity due to variation of product mix.
However, actual production and utilization for major products groups are as follows:
2015 2014
Actual Actual
Major product group/Unit Capacity production Utilization production Utilization
(In ’000) (In ’000) % (In ‘000) %
Sterile dry fill (injectable) / Vials 6,500 5,008 77.05% 4,637 71.34%
Sterile liquid (inj) / Vials / ampoule 10,500 11,842 112.78% 10,584 100.80%
Ointments / Tubes 1,500 465 31.00% 443 29.53%
Capsules and tablets / Cap / Tab 990,000 1,420,920 143.53% 1,268,595 140.96%
Oral liquid & dry syrup / Bottles 14,400 18,753 130.23% 17,048 118.39%
Water for injection / Ampoules 2,875 5,045 175.48% 4,671 162.47%
Premix feed supplement / Kg 4,500 5,850 130.00% 5,385 119.67%
Premix feed suppl. / Sachets 3,000 4,073 135.77% 3,670 122.33%
ORAL saline / Sachets 720,000 1,171,218 162.67% 1,018,450 141.45%
Potent Products / Tablets 2,000,000 2,573,725 128.69% 2,297,969 114.90%
40 Payments / receipts in foreign currency
40.1 During the year, the following payments were made in foreign currency for imports, calculated
on CIF basis of:
Foreign Local
currency currency
USD Taka
Active, raw and packaging materials 48,970,263 3,819,680,508

Machinery and spares 5,802,670 452,608,285
54,772,933 4,272,288,793
40.2 The following expenses were incurred during the year in foreign exchange on account of:
Professional consultation fee USD 410,899

Export promotional expenses USD 326,094
Product registration USD 19,190
40.3 Foreign exchange was earned in respect of the following:
Export of goods on FOB USD 8,915,872
•80
41 Related party disclosures
During the year the Company carried out a number of transactions with related parties in the normal course of business on
an arm's length basis. Name of those related parties, nature of those transaction and their total value has been shown in the
below table in accordance with BAS-24 "Related Party Disclosures".
Transaction-2015
Opening Closing
Name of the party Relationship Nature of transactions balance Addition Adjustment balance
Taka Taka Taka Taka
Renata Agro Subsidiary Sale of goods 11,225,150 22,540,860 26,909,060 6,856,950

Industries Limited Advance payment 3,944,592 35,000 703,233 3,276,359
Short term loan 150,000,000 - 50,000,000 100,000,000
165,169,742 22,575,860 77,612,293 110,133,309
Purnava Limited Subsidiary Purchase of goods - 7,135,922 7,135,922 -

Advance payment 61,354,495 136,279,911 68,508,504 129,125,902
61,354,495 143,415,833 75,644,426 129,125,902
Renata Oncology Limited Subsidiary Purchase of goods - 5,916,944 5,916,944 -

Advance payment 237,584,316 117,962,230 36,127,738 319,418,808
237,584,316 123,879,174 42,044,682 319,418,808
42 General
1) All the figures in the financial statements represent Bangladesh Taka currency rounded off to the nearest Taka.
2) The comparative information has been disclosed in respect of 2015 for all numerical information in the financial
statements and also the narrative and descriptive information as found relevant for understanding of the current year's
3) To facilitate comparison, certain relevant balances pertaining to the previous year have been rearranged or reclassified
whenever considered necessary to conform to current year presentation.
43 Events after the reporting period
The Board of Directors in their meeting held on 30 April 2016 have recommended cash dividend @ 85% per share of Taka
10 each aggregating Taka 450,104,869 and stock dividend @15% of Taka 10 each aggregating Taka 79,430,271 for the
year ended 31 December 2015 subject to approval of the shareholders in the Annual General Meeting scheduled to be held
on 19 November 2016. The financial statements for the year ended 31 December 2015 do not include the effects of the
above cash dividend and stock dividend which will be accounted for in the period when shareholders' right to receive the
payment will be established.
There are no other material events identified after the statement of financial position date which require adjustment or
disclosure in these financial statements.

as at and for the period ended June 30, 2016
•82
We have audited the accompanying financial
statements of Renata Limited (the “Company”),
which comprise the statement of financial
position as at 30 June 2016, statement of
profit or loss and other comprehensive circumstances, but not for the purpose of expressing an opinion on
income, statement of changes in equity and the effectiveness of the entity’s internal control. An audit also
statement of cash flows for the period from includes evaluating the appropriateness of accounting policies used
01 January to 30 June 2016 and a summary and the reasonableness of accounting estimates made by
of significant accounting policies and other management, as well as evaluating the overall presentation of the
relevant explanatory notes thereon. financial statements.
Management’s Responsibility for the We believe that the audit evidence we have obtained is sufficient and
Financial Statements appropriate to provide a basis for our audit opinion.
and fair presentation of these financial Opinion
statements in accordance with Bangladesh In our opinion, the financial statements prepared in accordance with
Financial Reporting Standards (BFRSs) and Bangladesh Financial Reporting Standards (BFRSs), give a true and
for such internal control as management fair view of the financial position of Renata Limited as at 30 June
determines is necessary to enable the 2016 and the results of its financial performance and its statement of
preparation of financial statements that are cash flows for the period from 01 January to 30 June 2016 and
free from material misstatement whether due comply with the Companies Act 1994, the Securities and Exchange
to fraud or error. Rules 1987 and other applicable laws and regulations.
Auditors’ Responsibility We also report that:

these financial statements based on our a) we have obtained all the information and explanations which to
audit. We conducted our audit in accordance the best of our knowledge and belief were necessary for the
with Bangladesh Standards on Auditing purposes of our audit and made due verification thereof;
(BSAs). Those standards require that we
comply with ethical requirements and plan b) in our opinion, proper books of account as required by law have
and perform the audit to obtain reasonable been kept by the Company so far as it appeared from our
assurance about whether the financial examination of those books;
c) the statement of financial position and statement of profit or loss
An audit involves performing procedures to and other comprehensive income along with the annexed notes
obtain audit evidence about the amounts and 1 to 41 dealt with by the report are in agreement with the books
disclosures in the financial statements. The of account; and
procedures selected depend on the auditor’s
judgment, including the assessment of the d) the expenditure incurred and payments made were for the
risks of material misstatement of the financial purposes of the Company's business.
statements, whether due to fraud or error. In
making those risk assessments, the auditor
considers internal control relevant to the
entity’s preparation and fair presentation of
the financial statements in order to design Dated, Dhaka Hoda Vasi Chowdhury & Co.
audit procedures that are appropriate in the 24 September 2016 Chartered Accountants

RENATA LIMITED
STATEMENT OF FINANCIAL POSITION Amount in Taka
AS AT 30 JUNE 2016
30 June 31 December
Non-current assets
Property, plant and equipment at cost/ revaluation less
accumulated depreciation 5 8,969,965,833 8,695,862,142
Investment in subsidiaries 7 143,069,376 143,069,376
Investment in shares 8 108,193,744 92,394,660
9,924,225,661 9,654,591,592
Current assets
Inventories 9 3,361,710,600 3,374,274,252
Trade receivables 10 2,029,259,467 1,750,889,884
Other receivables 11 760,474,958 724,662,495
Loan to Renata Agro Industries Limited 13 - 100,000,000
6,836,121,065 6,483,183,312
TOTAL ASSETS 16,760,346,726 16,137,774,904

Share capital 15 529,535,140 529,535,140
Tax holiday reserve 17 - 315,027,439
10,543,077,114 9,405,859,597
Long term loan - net off current portion 20 250,095,990 328,914,992
1,196,985,513 1,084,702,802
Current liabilities
Short term bank loans and overdrafts 21 2,598,322,461 3,233,496,219
Trade payables 22 281,252,786 263,501,276
Cost accruals 23 509,252,776 663,423,754
5,020,284,099 5,647,212,505
Dhaka, 24 September 2016 Hoda Vasi Chowdhury & Co.

•84
RENATA LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE PERIOD FROM 01 JANUARY TO 30 JUNE 2016
Amount in Taka
Tax holiday units 2016 2015

Penicillin Facility (January-June) (January-June)
February-
Non-tax January June Total of
Notes holiday (25% tax (no tax Penicillin
units exemption) exemption) Facility Total Total
Turnover 27 7,146,052,948 21,441,749 150,609,312 172,051,061 7,318,104,009 5,998,220,981

Cost of sales 28 (3,414,297,054) (15,480,876) (108,739,456) (124,220,332) (3,538,517,386) (2,907,342,202)
Gross Profit 3,731,755,894 5,960,873 41,869,856 47,830,729 3,779,586,623 3,090,878,779
Administrative, selling and
distribution expenses 29 (1,684,124,176) (1,707,653) (11,994,752) (13,702,405) (1,697,826,581) (1,492,059,767)
Other income 30 3,818,566 - - - 3,818,566 8,671,304
Operating profit 2,051,450,284 4,253,220 29,875,104 34,128,324 2,085,578,608 1,607,490,316
Finance costs 31 (101,200,188) (286,088) (2,009,512) (2,295,600) (103,495,788) (120,313,872)
Profit before contribution to WPPF 1,950,250,096 3,967,132 27,865,592 31,832,724 1,982,082,820 1,487,176,444
Contribution to WPPF (92,869,051) (188,911) (1,326,933) (1,515,844) (94,384,895) (70,817,926)
Profit before tax 1,857,381,045 3,778,221 26,538,659 30,316,880 1,887,697,925 1,416,358,518
Tax expenses
Current tax 26 (545,821,122) (708,416) (6,634,665) (7,343,081) (553,164,203) (333,574,629)
Deferred tax 19 (191,181,199) - - - (191,181,199) (150,704,200)
(737,002,321) (708,416) (6,634,665) (7,343,081) (744,345,402) (484,278,829)
Net profit after tax for the period 1,120,378,724 3,069,805 19,903,994 22,973,799 1,143,352,523 932,079,689

Net profit after tax for the period 1,143,352,523 932,079,689
Item that will not be reclassified to profit or loss:
Unrealized gain on quoted shares (6,214,491) (1,647,595)
Total comprehensive income for the period 1,137,138,032 930,432,094

RENATA LIMITED
Amount in Taka
Share Revaluation Tax holiday Available for Retained Total

capital surplus reserve sale reserve earnings


Net profit after tax for the period - - - - 1,143,352,523 1,143,352,523
Loss on quoted shares - - - (6,214,491) - (6,214,491)
Transfer of tax holiday reserve - - (315,027,439) - 315,027,439 -
Balance at 30 June 2016 529,535,140 156,281,949 - 8,266,952 9,848,993,073 10,543,077,114
•86
RENATA LIMITED
Amount in Taka
2016 2015
(January-June) (January-June)

Payment of VAT (1,076,870,744) (877,625,783)
1,902,191,355 1,819,144,344
Cash generated by operations
Finance costs (103,495,788) (173,060,342)
Payment of tax (359,956,367) (206,889,868)

Investment in shares (net) (15,799,084) (34,648,952)
Sale proceeds of property, plant and equipment - -
Net cash used in investing activities (564,506,556) (440,525,664)

Dividend paid (302,676) (44,717,827)
Net cash used in financing activities (714,495,437) (1,019,302,362)
D. Net cash inflow for the period (A+B+C) 159,737,206 (20,633,892)
F. Cash and cash equivalents at 30 June (D+E) 450,611,442 231,373,404

RENATA LIMITED
FOR THE PERIOD ENDED 30 JUNE 2016
1 Reporting entity
1.1 Company profile

May 1979. Subsequently, the Company was renamed as Renata Limited in 1993. The registered office of the Company is
situated at Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216.

products.
2 Significant accounting policies

Item of property, plant & equipment is recognized where it is probable that future economic benefits will flow to the entity
and their cost can be measured reliably.

An item of property, plant and equipment qualifying for recognition is initially measured at its cost. Cost comprises:
- Purchase price including all non recoverable duties and taxes but net off discounts; and
- Costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of
operating in the manner intended by the management.
2.1.2 Subsequent costs

- Repairs and maintenance expenditure is recognized as expenditure when incurred.
2.1.3 Depreciation
operation except land. Full month's depreciation is charged from the month the asset is put into use and no depreciation is
charged for the month of disposal.
The rates of depreciation and category of property, plant and equipment are as follows:

Asset Type
30 June 2016 31 December 2015
Buildings 1.54-5 1.54-5
Automobiles 25 25
Furniture and fixtures 10 10

An item of property, plant and equipment is removed from the statement of financial position when it is disposed of or
when no future economic benefits are expected from its use or disposal. The gain or loss on the disposal of an item of
property, plant and equipment is included in the statement of profit or loss and other comprehensive income of the period
in which the assets are disposed of.
2.1.5 Impairment
The carrying amounts of its assets are reviewed at each financial position date to determine whether there is any indication
of impairment loss. If any such indication exists, recoverable amount is estimated in order to determine the extent of the
based on the actual experience. There is no impairment as at 30 June 2016 and 31 December 2015.
•88
BAS-16 “Property, Plant and Equipment”, Paragraph 34 requires that a periodical revaluation is to be carried out at regular
interval if the property price is volatile/significantly differs. It has been seen that for last few years, the property prices are
showing downtrend and no significant difference is expected. However, the management contemplates to review this matter
and undertakes such valuation exercise in the future.

construction/acquisition is completed and measured at cost.
2.3 Investment in subsidiaries

Investment in subsidiaries is accounted for in accordance with BAS-27 “Separate Financial Statements”.



2.7 Trade payables

2.8 Interest bearing borrowings

Interest bearing bank loans and overdrafts are recorded at the amount of proceeds received. Borrowing costs directly
attributable to the acquisition and construction of plant and equipment are capitalized as part of the cost of those assets, until
such time as the assets are ready for their intended use in accordance with BAS-23 “Borrowing Costs”. All other borrowing
costs are charged to the statement of profit or loss and other comprehensive income as an expense in the period in which
they are incurred.
2.9 Inventories
Cost of active materials, raw materials and packing materials is valued by using FIFO method.
Cost of work-in-progress and finished stocks are determined by using FIFO cost formula including allocation of
manufacturing overheads related to bringing the inventories to their present condition. The Company uses standard cost
method for measurement of cost of finished goods.
Provision
Provision is recognized in the financial statements in line with the BAS-37 “Provisions, Contingent Liabilities and Contingent
Assets” when
- the Company has a legal or constructive obligation as a result of past event;


2.11 Workers’ profit participation and welfare fund
The Company has created a workers’ profit participation and welfare fund in compliance with “The Bangladesh Labour Act,
2006” (as amended in 2013) and 5% of profit before charging such expenses is transferred to this fund.

2.12.1 Current tax

2.12.2 Deferred tax

period(s) recognized in the current period. The deferred tax asset / income or liability / expense do not create a legal liability
/ recoverability to and from the income tax authority. Deferred tax also arises due to revaluation of property, plant and
changes in equity.
2.13 Employees’ benefit plan


2.13.3 Group insurance scheme

2.14 Revenue
Revenue is recognized upon invoicing the customers for goods sold and delivered net off returns, allowances and trade
discounts.
the Company.

Foreign currency transactions are accounted for at exchange rate prevailing on the date of transaction. Monetary assets and
liabilities denominated in foreign currencies at reporting date are translated at rates ruling at the statement of financial
position date. All exchange differences are charged/ credited to the statement of profit or loss and other comprehensive
income.

The Company presents basic earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated as the profit or
loss attributable to the ordinary shareholders of the Company divided by the weighted average number of ordinary shares
outstanding during the period.
2.17 Segment reporting

As there is a single business and geographic segment within which the Company operates, no segment reporting is felt
necessary.
•90
2.18 Financial risk management
performance.
best practices.
2.18.1 Credit risk


price.
damage to the Company's reputation. Typically, management ensures that it has sufficient cash and cash equivalents to
meet expected operational expenses, including the servicing of financial obligations through preparation of the cash forecast
prepared based on time line of payment of the financial obligations and accordingly arrange for sufficient liquidity/fund to
make the expected payments within due date.
2.18.3 Market risk

a. Currency risk
The Company is exposed to currency risk on certain receivables and payables such as receivables from foreign
customers and payables for import of raw materials, machinery and equipments. The majority of the Company’s
foreign currency transactions is denominated in US Dollar and relates to procurement of raw materials, machinery and
equipments from abroad.

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. Interest rate risk is the risk that the value of a financial instrument will fluctuate because of
changes in market interest rates. Renata Limited takes on exposure to the effects of fluctuations in the prevailing
levels of market interest rates on both its fair value and cash flow risks. Interest margins may increase as a result of
such changes but may reduce losses in the event that unexpected movements arise.
3 Basis of preparation of financial statements

position and statement of profit or loss and other comprehensive income.
3.2 Reporting framework and compliance thereof

and Exchange Rules 1987, the Listing Regulations of Dhaka Stock Exchange (DSE) and other relevant local laws as
International Financial Reporting Standards (IFRSs) and International Accounting Standards (IASs).

financial information presented in Taka has been rounded off to the nearest Taka.

The accompanying financial statements cover a period of six months from 1 January to 30 June 2016.
3.5 Comparative information and rearrangement thereof


Bangladesh Financial Reporting Standards (BFRSs) require management to make judgments, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses, and
disclosure requirements for contingent assets and liabilities during and at the date of the financial statements.
In particular, significant areas of uncertainty and critical judgments in applying accounting policies that have the most
significant effect on the amounts recognized in the financial statements include depreciation, inventory valuation, accrued
expenses and other payables.
3.7 Going concern

The Company has adequate resources to continue in operation for foreseeable future. For this reason, the directors continue

3.9 Related party disclosures

The Company carried out a number of transactions with related parties in the normal course of business and on an arms’
length basis. The information as required by BAS-24 “Related Party Disclosures” has been disclosed in a separate note to
3.10 Events after the reporting period

In compliance with the requirements of BAS-10 “Events After the Reporting Period”, post statement of financial position
events that provide additional information about the Company’s position at the statement of financial position date are
reflected in the financial statements and events after the statement of financial position date that are not adjusting events are
disclosed in the notes when material.
3.11 Date of authorization for issue of the financial statements

On 24 September 2016, the Board of Directors reviewed the financial statements and authorized for issue.
3.12 Directors’ responsibility statement

4 Preparation and presentation of the financial statements of the Company and its subsidiaries
The Board of Directors of respective companies is responsible for the preparation and presentation of the financial
statements of Renata Limited and its subsidiaries. Renata Limited has three subsidiaries incorporated in Bangladesh.
•92
5 Property, plant and equipment - at cost / revaluation less accumulated depreciation Amount in Taka
COST/REVALUATIONS DEPRECIATION
Written down
Particulars Balance as at Additions Disposal/ Balance as at Balance as at Charge Disposal/ Balance as at value as at
Rate
1 January during adjustment 30 June 1 January for adjustment 30 June 30 June
2016 the period during the period 2016 % 2016 the period during the period 2016 2016
Freehold land:
At cost 1,001,655,175 20,961,147 - 1,022,616,322 - - - - 1,022,616,323
On revaluation 179,132,078 - - 179,132,078 - - - - 179,132,078
1,180,787,253 20,961,147 - 1,201,748,400 - - - - 1,201,748,401
Buildings
At cost 2,899,931,928 123,995,375 - 3,023,927,303 1.54-5 328,081,523 46,993,310 - 375,074,833 2,648,852,470
On revaluation 41,291,251 - - 41,291,251 1.54-5 12,422,788 317,943 - 12,740,731 28,550,520
2,941,223,179 123,995,375 - 3,065,218,554 340,504,311 47,311,254 - 387,815,565 2,677,402,989
Plant and machinery 6,271,699,329 334,662,194 2,192,971 6,604,168,552 5 - 20 1,652,633,650 209,493,281 1,216,758 1,860,910,174 4,743,258,378
Automobiles 223,361,539 62,013,000 - 285,374,539 25 153,629,965 18,185,064 - 171,815,029 113,559,510
Office equipment 268,161,675 19,250,962 - 287,412,636 10 - 12.5 129,168,561 12,629,847 - 141,798,409 145,614,227
Furniture and fixtures 128,112,040 8,093,502 90,800 136,114,741 10 41,546,386 6,223,576 37,550 47,732,413 88,382,328
Total 30 June 2016 11,013,345,015 568,976,180 2,283,771 11,580,037,422 2,317,482,873 293,843,022 1,254,308 2,610,071,589 8,969,965,833
Total 31 December 2015 9,903,102,350 1,118,447,665 8,205,000 11,013,345,015 1,796,409,789 529,278,084 8,205,000 2,317,482,873 8,695,862,142
5.1 Initially recognised value of fully depreciated assets included in property, plant and equipment
is as follows:
30 June 31 December
2016 2015
Buildings 4,448,824 4,448,824
Automobiles and trucks 125,025,555 113,420,555
398,438,383 386,784,833
5.2 The freehold lands of the Company measuring 202.059 acres are located at:
Mirpur, Dhaka 12.000 acres 12.000 acres
Pekua, Cox's Bazar 45.340 acres 45.340 acres
Barisal Sadar 0.290 acres 0.290 acres
Gondogram, Bogra 0.270 acres 0.270 acres
Lakshimipur, Rajshahi City Corporation 0.149 acres 0.149 acres
Dogri Rajendrapur, Gazipur 16.763 acres 16.763 acres
Kashor Gore, Bhaluka, Mymensingh 30.232 acres 27.596 acres
Sagordighi, Tangail 13.805 acres 13.805 acres
Siddikhali, Tangail 1.050 acres 1.050 acres
Ghatail, Tangail 13.234 acres 13.234 acres
Dhamsur, Bhaluka, Mymensingh 26.370 acres 26.370 acres
Turag, Dhaka 0.660 acres 0.660 acres
Sreepur, Gazipur 13.830 acres 13.830 acres
Keranigonj, Dhaka 0.590 acres 0.590 acres
Faridpur 0.410 acres 0.410 acres
Feni 0.365 acres 0.365 acres
Chatropur, Mymensingh 0.558 acres 0.558 acres
Phulbaria, Mymensingh 8.503 acres 8.503 acres
Mymensingh Depot 0.035 acres 0.035 acres
Sylhet Depot 0.483 acres 0.483 acres
Bogra Depot 0.645 acres 0.645 acres
Lohaboy, Bhaluka 4.463 acres 4.463 acres
Narangi, Bhaluka 6.605 acres 6.605 acres
Comilla Depot 0.580 acres 0.580 acres
Salna, Purabari 0.307 acres 0.307 acres
Sathkhamair, Sreepur 3.719 acres 2.154 acres
Dinajpur Depot 0.803 acres 0.803 acres
Total 202.059 acres 197.859 acres
Amount in Taka
30 June 31 December
5.3 Depreciation for the period has been charged to: 2016 2015
Cost of goods sold - Non-tax holiday units (Note-28.2) 245,285,420 188,950,908
Cost of goods sold - Tax holiday units (Note-28.2) 12,538,950 37,073,625
257,824,370 226,024,533
Administrative, selling and distribution expenses (Note-29) 36,018,652 25,364,410
293,843,022 251,388,943
5.4 The freehold land and buildings were revalued by a firm of professional valuers in the year 1995 and the increase in net
carrying amount as a result of revaluation was shown as addition / valuation in that year.
6 Capital work in-progress
Opening balance 723,265,414 857,479,062

Add : Addition during the period 404,076,364 726,375,370
1,127,341,778 1,583,854,432
Less: Capitalized as property, plant and equipment (Note-6.1) 424,345,070 860,589,018
702,996,708 723,265,414
This represents mainly construction of buildings for Bogra Depot, Rajendrapur Power Substation, Bhaluka Power
Substation, ERP project, installation of plant and machinery, their components and other fixed assets procured from foreign
and local vendors.
6.1 The break down of capitalised property, plant and equipment is as follows:
Freehold land - 10,377,868

Buildings 112,523,629 226,314,316
Automobiles - 26,234,885
424,345,070 860,589,018
7 Investment in subsidiaries
Separate Financial Statements as per BAS-27 "Separate Financial Statements" are to enhance the relevance, reliability and
comparability of the information that a parent entity provides in its separate financial statements for a group of entities under
its control. An entity must disclose the information to enable users of the financial statements to evaluate the nature of the
relationship between the entity and its subsidiaries.
No. of shares
Renata Agro Industries Limited (Note-7.1) 419,949 60,570,476 60,570,476

Purnava Limited (Note-7.2) 24,999 2,499,900 2,499,900
Renata Oncology Limited (Note7.3) 7,999,900 79,999,000 79,999,000
8,444,848 143,069,376 143,069,376
•94
7.1 Investment in subsidiary company - Renata Agro Industries Limited
Renata Limited has aquired 99.99% equity interest in Renata Agro Industries Limited (419,949 ordinary shares of Tk.
60,570,476) on 7 April 2001. An amount of Tk. 60,570,476 as purchase cost of shares issued against acquisition of this
subsidiary has been shown as investment in subsidiary at cost as per BAS-27. Renata Limited and Renata Agro Industries
Limited have been operating under common control.
7.2 Investment in subsidiary company - Purnava Limited

Renata Limited has aquired 99.99% equity interest in Purnava Limited (24,999 ordinary shares of Tk. 100 each) on 16
September 2004. An amount of Tk. 2,499,900 being face value of shares issued against acquisition of this subsidiary has
been shown as investment in subsidiary at cost as per BAS-27. Renata Limited and Purnava Limited have been operating
under common control.
7.3 Investment in subsidiary company - Renata Oncology Limited

Renata Limited has aquired 99.99% equity interest in Renata Oncology Limited (7,999,900 ordinary shares of Tk. 10 each)
on 12 August 2012. An amount of Tk. 79,999,000 being face value of shares issued against acquisition of this subsidiary has
been shown as investment in subsidiary at cost as per BAS-27. Renata Limited and Renata Oncology Limited have been
operating under common control.
Amount in Taka
8 Investment in shares Market value Book value
30 June 31 December 30 June

Details of the shares are given below: 2016 2015 2016
AFC Agro Biotech Limited 21,406,186 24,159,983 24,159,983
NCC Bank Limited - 1,539,538 -
IFAD Autos Limited 718,719 787,950 787,950
Unique Hotel & Resorts Limited 2,802,000 3,036,000 3,036,000
First Security Islami Bank Limited - 1,602,040 -
EXIM Bank Limited 1,424 3,151,711 1,531
Mercantile Bank Limited - 1,598,580 -
Pioneer Insurance Company Ltd. 1,160,844 1,120,625 1,120,625
Summit Power Limited 3,593,400 - 4,121,703
IDLC Finance Limited 2,935,000 - 3,198,917
Trust Bank Limited 1,998,000 - 2,379,480
The City Bank Limited 924,000 - 838,792
People's Leasing and Financial services Limited 9,761 16,045 16,045
International Leasing and Finance Services Limited 6,791 7,644 7,644
108,193,744 92,394,660 114,408,236

Amount in Taka
9 Inventories
30 June 31 December
2016 2015
Finished goods
- Pharmaceutical 485,097,557 558,011,492
- Animal health 420,866,583 415,788,068
- Cepha facility 122,809,355 125,938,240
1,127,819,390 1,219,225,246
Work-in-process 172,750,725 150,466,515
Raw materials 459,324,651 655,369,468
Bulk materials 767,507,995 705,741,044
Consumable stores, spares and reagent materials 149,278,384 107,910,128
Stock in transit 431,542,273 257,461,650
3,452,123,341 3,443,418,118
Provision for obsolete inventories (90,412,741) (69,143,866)
3,361,710,600 3,374,274,252
10 Trade receivables
Trade receivables - unsecured (Note - 10.1) 2,086,879,702 1,808,375,477

Allowance for doubtful receivables (57,620,235) (57,485,593)
2,029,259,467 1,750,889,884
10.1 Trade receivables disclosure as per Schedule-XI, Part-I, of the Companies Act, 1994
Receivables due below six months 1,944,586,148 1,666,255,884

2,086,879,702 1,808,375,477
Trade receivables include Tk. 9,977,575 due from Renata Agro Industries Limited.
11 Other receivables
Inter-company receivables
- Renata Agro Industries Limited 973,359 3,276,359
- Purnava Limited 143,409,462 129,125,902
- Renata Oncology Limited 326,273,629 319,418,808
Others 51,790,091 18,554,792
760,474,958 724,662,495
•96
Amount in Taka
12 Advances, deposits and prepayments

30 June 31 December
2016 2015
Advances
Advance VAT 51,272,903 70,450,929
Advance for field force 12,821,000 12,092,250
Advance to staff against expenses 16,324,863 9,631,736
Advance to staff against petty expenses 941,000 646,000
Advance against tour expenses 5,105,062 3,149,305
190,105,534 206,022,782
Deposits
Tender deposits 8,904,110 7,793,616
Titas Gas Transmission and Distribution Co. Limited 455,811 345,561
Dhaka Electric Supply Co. Limited 2,310,000 2,310,000
Radison Water Garden Hotel 200,000 200,000
Gazipur Palli Bidyut Samity 10,248,000 10,248,000
Bangladesh Customs House, Dhaka Airport 200,000 200,000
Bangladesh Power Development Board, Sylhet 90,000 90,000
Bangladesh Power Development Board, Comiilla 40,000 40,000
Bangladesh Petroleum Exploration & Production Co. Ltd. 7,000 7,000
Dhaka Medical College & Hospital 1,540 1,540
Miscellaneous deposits 260,500 260,500
36,429,611 34,964,867
Prepayments
7,529,453 1,494,796
234,064,598 242,482,445
13 Loan to Renata Agro Industries Limited

Opening balance 100,000,000 150,000,000
Received during the period/ year (100,000,000) (50,000,000)
- 100,000,000

Amount in Taka
30 June 31 December
2016 2015
14 Cash and cash equivalents
Cash in hand 2,075,000 2,025,000
Cash at bank
One Bank Limited 2,993 2,993
United Commercial Bank Limited 909,075 1,328,707
448,496,560 267,444,733
Balance with City Bank Capital Resources Limited 31,434 21,404,503
Balance with ICB Securities Trading Company Limited 8,449 -
39,882 21,404,503
450,611,442 290,874,236
15 Share capital

100,000,000 ordinary shares of Tk.10 each 1,000,000,000 1,000,000,000

49,934,764 ordinary shares of Tk.10 each issued as bonus shares 499,347,640 499,347,640
529,535,140 529,535,140
These shares are listed with Dhaka Stock Exchange Limited and quoted at Tk. 1,185.20 per share on 30 June 2016.
At 30 June 2016, the shareholding position of the Company was as follows:
Nationality/ Number of Face value % of total

Name of the shareholders Incorporated in shares Taka shareholdings

52,953,514 529,535,140 100%
•98
30 June 2016
No. of No. of
shareholders shareholders No. of total No. of % of total
Less than 500 shares 146 3,214 3,360 388,205 1%

501 to 5000 shares 58 728 786 1,222,847 2%
5,001 to 10,000 shares 12 66 78 561,496 1%
10,001 to 20,000 shares 19 48 67 920,602 2%
20,001 to 30,000 shares 2 20 22 532,689 1%
30,001 to 40,000 shares - 15 15 518,143 1%
40,001 to 50,000 shares 2 11 13 587,889 1%
50,001 to 100,000 shares - 10 10 717,809 1%
100,001 to 1,000,000 shares 1 13 14 3,399,330 6%
Over 1,000,000 shares 2 3 5 44,104,504 83%
242 4,128 4,370 52,953,514 100%
16 Revaluation surplus
The freehold land and buildings were revalued by a firm of professional valuers in the year 1995 and the resulting increase
of value of Tk. 220,423,329 has been shown as revaluation surplus. BAS 16, Paragraph 34 requires that a periodical
revaluation is to be carried out at regular interval if the property price is volatile/significantly differs. It has been seen that for
last few years, the property prices are showing downtrend and no significant difference is expected. However, the
management contemplates to review and undertakes such valuation exercise in the future. The breakup of revaluation
surplus is as follows:
30 June 31 December
2016 2015
Land 179,132,078 179,132,078
Buildings 28,868,463 29,504,348
208,000,541 208,636,426
Depreciation charged during the period on revalued buildings (317,943) (635,885)
207,682,598 208,000,541
Adjustment of deferred tax on revaluation surplus (51,400,648) (51,480,134)
156,281,949 156,520,407
17 Tax holiday reserve 315,027,439 296,337,069

Opening balance - 18,690,370
Provision made during the period/ year 315,027,439 315,027,439
(315,027,439) -
Transferred to retained earnings - 315,027,439
Tax holiday reserve was created using appropriate rate (40%) of income as prescribed in the Income Tax Ordinance 1984.
The Company was granted tax holiday by the National Board of Revenue for a period of five years for Cepha and Penicillin
units for the period from 1 February 2010 to 31 January 2015 and 1 February 2011 to 31 January 2016 respectively. As the
tax holiday period of the units expired, the balance of the tax holidy reserve has been transferred to retained earnings.
18 Retained earnings
Opening balance 8,390,295,168 6,842,987,470
Profit for the period/ year 1,143,352,523 2,006,641,464
Transfer from tax holiday reserve 315,027,439 (18,690,370)
Stock dividend issued - (88,255,850)
Cash dividend paid - (353,023,432)
9,848,993,073 8,390,295,168

Amount in Taka
30 June 31 December
2016 2015
19 Deferred tax liabilities
Opening balance 755,787,810 545,897,110
Addition during the period (expenses) 191,181,199 210,048,082
946,969,009 755,945,192
Adjustment of deferred tax on revaluation surplus (79,486) (157,382)
946,889,523 755,787,810
Deferred tax liability has been recognized in accordance with the provision of BAS-12 "Income Taxes" based on temporary
Carrying amount Taxable/(deductible)

on balance temporary
sheet date Tax base difference
Taka Taka Taka
For the period ended 30 June 2016

7,662,272,555 3,724,762,661 3,937,509,894
Provision for obsolete inventories
Temporary difference (59,539,060) - (59,539,060)
Applicable tax rate 3,787,558,092
Deferred tax liability as on 30 June 2016 25%
755,787,810
Adjustment of deferred tax on revaluation surplus 191,101,713
Deferred tax expense for the period ended 30 June 2016 79,486
191,181,199

6,783,089,282 3,631,389,757 3,151,699,525

Applicable tax rate 25%
209,890,700
Adjustment of deferred tax on revaluation surplus 157,382
•100
Amount in Taka
20 Long term loan - net off current portion 30 June 31 December

2016 2015
406,895,993 485,914,995
156,800,003 157,000,003
250,095,990 328,914,992
Facility limit : USD 6,811,696.
Nature of security : i) Registered mortgage over 376.87 decimals industrial land in Rajendrapur where Cepha, Penicillin,
and Bottle sheed are situated.
21 Short term bank loans and overdrafts
Short term bank loans

The Hongkong and Shanghai Banking Corporation Limited (Note-21.2) 2,505,543 1,155,433,187
Standard Chartered Bank (Note-21.4) 1,363,613,386 1,180,191,182
Citibank N. A. (Note-21.5) 372,441,895 113,049,101
2,170,559,835 3,085,316,174
Overdrafts
Citibank N. A. (Note-21.5) 64,099,901 9,803,112
Commercial Bank of Ceylon PLC (Note 21.7) 74,891,707 8,615,651
427,762,626 148,180,045
2,598,322,461 3,233,496,219

The terms and conditions of the facility available for (Overdraft, Acceptance, LATR, Revolving, import and Demand loan) are
as follows:
Overdraft
Letter of credit/ Acceptance (Sight/ Usance)

Import finance
Security
sharing agreement.
iii) Registered hypothecation by way of pari passu with RJSC on entire inventory book debts and other floating assets and
plant and machinery of the Company in favor of Eastern Bank Limited.

Purpose : To import raw materials, plant and machinery and spare on sight and deferred basis.


Overdraft (O/D01)
Security
sharing agreement.
•102

Import finance
Short term loan

Overdraft
Security
sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited with RJSC on pari passu security
sharing basis with the existing lenders.
Letter of credit

Overdraft
Acceptance
Security
sharing agreement.

21.5 Citibank N. A.
Import finance
Short term loan

Overdraft

Security
sharing agreement.

Revolving LATR
Overdraft

Security
sharing agreement.
•104

Security
sharing agreement.
30 June 31 December
22 Trade payables 2016 2015
Local purchase 243,302,278 240,267,290
Toll manufacturing charges - (Sharif and NAFCO) 7,094,416 6,843,986
281,252,786 263,501,276
23 Cost accruals
Sales incentive 47,485,630 148,944,055
Annual bonus 101,381,910 104,243,919
Leave incentive 40,426,113 25,030,901
Legal expenses 2,077,514 6,951,415
509,252,776 663,423,754

Amount in Taka
24 Provisions and other liabilities 30 June 31 December

Provisions
2016 2015
Final settlement of employees - 344,985
70,075,697 56,373,910
Other liabilities
Workers' profit participation fund 202,126,474 314,917,811
Workers' welfare fund 31,181,844 31,244,771
VAT Payable 107,030,084 107,030,084
Withholding Tax 6,361,979 5,037,979
PF Trustee 2,853,977 6,563,266
Gratuity 16,244,056 -
Advance against sales 38,305,760 -
Royalty payable 10,395,776 9,511,330
Grant fund GAIN 5,872,319 537,958
442,367,581 504,109,707
512,443,278 560,483,617
Unresolved VAT cases claimed by the VAT authority amounting to Tk. 107,030,084 for which appeals are pending with the
Hon'ble High Court Division of the Supreme Court and VAT Appellate Tribunal. However, a liability has been provided in the
financial statements considering the probable unfavorable merit of the cases.
25 Unclaimed dividend

16,758,740 17,061,417
26 Provision for taxation
Opening balance 752,246,219 624,740,709

Provision made during the period/ year 553,164,203 514,822,787
1,305,410,422 1,139,563,496
Payment made during the period/ year (359,956,367) (387,317,277)
945,454,055 752,246,219
•106
27 Turnover Amount in Taka
2016 2015
Gross Turnover Turnover
Turnover Less: VAT (net) (net)
Non-tax holiday units:
Pharmaceutical products 5,833,305,159 825,100,232 5,008,204,927 4,155,869,993
Animal health products 1,629,670,276 125,573,122 1,504,097,154 1,122,400,298
Contract manufacturing 730,028,018 96,277,154 633,750,864 581,221,632
8,193,003,453 1,046,950,508 7,146,052,948 5,859,491,923
Tax holiday unit:
201,971,299 29,920,238 172,051,061 138,729,060
8,394,974,752 1,076,870,746 7,318,104,009 5,998,220,981
During the period, sale of pharmaceuticals products includes export sales of Tk. 159,449,774 equivalent to USD 2,032,428.
Amount in Taka
28 Cost of goods sold
2016 2015
Non-tax Tax holiday Unit
holiday Penicillin Total Total
Units Facility
Raw materials consumed - (Note-28.1) 2,167,787,987 21,732,699 2,189,520,686 1,689,204,951

Factory overhead - (Note-28.2) 1,197,430,173 82,444,882 1,279,875,055 1,014,580,033
Manufacturing costs 3,365,218,160 104,177,581 3,469,395,741 2,703,784,984
Add: Opening work-in-process 136,881,930 13,584,585 150,466,515 215,773,935
3,502,100,090 117,762,166 3,619,862,256 2,919,558,919
Less: Closing work-in-process 164,222,190 8,528,535 172,750,725 216,386,268
Cost of goods manufactured 3,337,877,900 109,233,631 3,447,111,531 2,703,172,651
Add: Opening finished goods 1,178,132,047 41,093,198 1,219,225,245 1,016,221,126
Cost of goods available for sale 4,516,009,947 150,326,829 4,666,336,776 3,719,393,777
Less: Closing finished goods 1,101,713,194 26,106,196 1,127,819,390 812,051,575
3,414,296,753 124,220,633 3,538,517,386 2,907,342,202
This is arrived at as follows:

Opening stock 1,678,287,731 30,066,848 1,708,354,579 1,224,729,966
Add : Purchase during the year 1,999,949,968 51,948,708 2,051,898,676 2,172,829,564
Total materials available 3,678,237,699 82,015,556 3,760,253,255 3,397,559,530
Less : Closing stock 1,510,449,712 60,282,857 1,570,732,569 1,708,354,579
Raw material consumed 2,167,787,987 21,732,699 2,189,520,686 1,689,204,951

Amount in Taka
28.2 Factory overhead
2016 2015
Non-tax Tax holiday Unit
holiday Penicillin Total Total
Units Facility
Salaries, wages and other benefits 283,001,513 9,792,188 292,793,701 234,094,627

Company's contribution to PF 3,558,601 9,720 3,568,321 2,651,734
Gratuity expenses 20,526,601 606,146 21,132,747 27,649,084
Electricity and fuel 244,518,236 33,304,899 277,823,135 240,654,338
Consumable stores and supplies 94,466,654 3,545,486 98,012,140 77,978,680
Insurance 946,334 66,064 1,012,398 2,081,200
Land revenue and taxes 1,433,547 120,645 1,554,192 994,396
Rent 691,225 172,805 864,030 683,946
Automobile expenses 8,285,775 579,711 8,865,486 7,023,268
Postage and telephone 5,574,562 448,770 6,023,332 3,912,912
Stationeries & Supplies 12,816,361 2,012,780 14,829,141 12,786,117
Uniform for workers 2,496,978 166,685 2,663,663 4,403,744
Travelling and moving expenses 14,358,630 1,529,660 15,888,290 17,490,143
Repair and maintenance 194,279,345 13,713,290 207,992,635 96,713,349
Lunch, snacks and tea expenses 53,176,593 3,823,712 57,000,305 48,928,349
Depreciation 245,285,420 12,538,950 257,824,370 226,024,533
Other overhead expenses 12,013,798 13,371 12,027,169 10,509,613
1,197,430,173 82,444,882 1,279,875,055 1,014,580,033
28.3 Purchases, issues and stocks of raw materials

Purchases, issues and stocks of raw materials are of over 3,000 items involving production of 840 finished goods
formulations. The measurement is expressed in different units viz kilogram, activity, liter, pieces etc. In view of different units
in use, the following table has been presented in value only.
Amount in Taka
Opening Closing
Major material group stocks Purchases Consumtion stocks
Active materials 692,808,485 1,201,529,535 1,170,997,217 723,340,803
Raw materials 667,307,127 243,735,366 456,395,374 454,647,119
Packaging materials 318,172,119 554,685,067 540,395,396 332,461,790
1,678,287,731 1,999,949,968 2,167,787,987 1,510,449,712
Tax holiday units:
30,066,848 51,948,708 21,732,699 60,282,857
1,708,354,579 2,051,898,676 2,189,520,686 1,570,732,569
7,567,349 79,583,407 79,248,249 7,902,507

Consumable stores 100,342,779 154,455,462 113,422,364 141,375,877
Maintenance stores and spares 107,910,128 234,038,869 192,670,613 149,278,384
1,816,264,707 2,285,937,545 2,382,191,299 1,720,010,953
•108
As per Part II of Schedule XI of the Companies Act, 1994 the quantities of raw materials, purchases and stocks should be
expressed in quantitative denomination. However, this could not be provided as the Company deals with large number of
products both locally made and imported.
Materials available in local market are procured from the local manufacturers. Materials are imported from the following
countries either directly from the manufacturers or suppliers approved by the Drug Administration:
India Japan Italy New Zealand

China Thailand Denmark Indonesia
Hong Kong South Korea Spain Argentina
Singapore United States of America (USA) Germany Brazil
Malaysia United Kingdom (UK) Austria Czech Republic
29 Administrative, selling and distribution expenses
Amount in Taka
2016 2015
Tax holiday Unit
Non-tax Penicillin Total Total
holiday units Facility
Salaries, wages and allowances 474,969,486 3,864,456 478,833,942 463,306,434

Contribution to provident fund 16,677,767 135,694 16,813,461 11,420,535
Gratuity expenses 38,882,934 316,360 39,199,294 30,356,008
Electricity and power 23,325,729 189,783 23,515,512 21,128,609
Rent, rates and taxes 11,246,791 91,506 11,338,297 20,560,640
Insurance 2,490,876 20,266 2,511,142 3,858,685
Travelling expenses 156,655,487 1,274,583 157,930,070 146,320,397
Repairs and maintenance 17,348,814 141,153 17,489,967 28,357,805
Legal and professional expenses 453,860 9,467 463,327 4,300,003
Provision for bad debts 134,642 - 134,642 4,000,000
Audit fees 575,000 - 575,000 810,000
Directors' fees 210,000 - 210,000 180,000
Membership fees & subscription 21,242,671 174,544 21,417,215 5,556,601
Meeting and corporate expenses 36,871,953 299,998 37,171,951 31,086,630
Sales promotion 191,320,893 1,556,630 192,877,523 172,474,371
Field expenses 310,632,195 2,820,428 313,452,623 201,089,555
Depreciation 36,018,652 - 36,018,652 25,364,410
Stationery 18,699,476 152,143 18,851,619 18,202,036
Postage, telex, fax and telephone 15,098,213 122,842 15,221,055 18,032,575
Distribution freight 149,572,299 1,216,953 150,789,252 143,559,185
Lunch, snacks, tea and welfare expenses 74,399,578 605,332 75,004,910 64,889,465
Other overhead expenses 87,296,860 710,267 88,007,127 77,205,823
1,684,124,176 13,702,405 1,697,826,581 1,492,059,767

30 Other income
2016 2015
Scrap sales 1,521,243 1,496,474
Dividend income 1,353,346 523,450
Interest income 382,401 1,242,105
Gain from sale of quoted shares 561,576 -
Exchange gain - 5,409,275
3,818,566 8,671,304
31 Finance cost

Exchange loss 3,140,847 -
Bank charges 6,404,841 6,848,212
103,495,788 120,313,872
32 Basic earnings per share (EPS)

Earnings attributable to the ordinary shareholders (net profit after tax for the period 1,143,352,523 932,079,689
Weighted average number of ordinary shares outstanding during the period (Note-32.1) 52,953,514 52,953,514
32.1 Weighted average number of share outstanding during the period
Opening number of shares 52,953,514 44,127,928

Bonus shares issued in June 2015 - 8,825,586
52,953,514 52,953,514
33 Payments to directors and officers
The aggregate amount paid (except Directors' fees for attending board meetings) during the period to Directors and officers of the
Company is disclosed below as required by the Securities and Exchange Rules-1987:
Amount in Taka
Directors Officers
Remuneration 4,487,878 179,247,735

House rent 2,855,358 151,174,112
Bonus 1,495,960 59,890,945
Gratuity 560,985 66,032,770
13,356,035 589,267,743
•110
33.1 During the period, no payment has been made to any non-executive directors for any special services rendered.
34. Contingent liabilities
34.1 There are contingent liabilities on account of unresolved disputed corporate income tax assessments involving tax claims by
the tax authority amounting to Tk. 8,381,193 for the assessment year 1998-99 to 2000-01; Tk. 11,888,503 for the
assessment year 2013-14 and Tk. 14,478,424 for the assessment year 2014-2015 for which appeals are pending with the
Commissioner of Taxes (Appeal) and the Hon'ble High Court Division of the Supreme Court.
34.2 The Assistant Commissioner of Taxes issued a notice vide letter No. SA-162/2014-2015/82 on 01 September 2014 claiming
that during the assessment year 2008-09 (income year 2007), the Company did not deduct VAT on certain accounting heads
amounting to Tk. 232,741,698 and tax file reopened accordingly under Section 93 of the Income Tax Ordinance, 1984. Total
tax amount was calculated Tk. 69,822,509 on that claimed amount by using the prevailing corporate tax rate 30%. However,
the Hon'ble High Court delivered the verdict in favour of the Company on 6 January 2016 but the National Board of Revenue
has made leave to appeal to the Supreme Court Appellate Division against the verdict.
34.3 The Value Added Tax Authority issued a notice vide letter No. 4/LTU-Mushak/Circle-5(29)Renata/631 on 28 January 2015
claimed that the Company did not pay VAT on Premix Products during 2009 to 2013 period and VAT claimed Tk.
399,242,746 for the period. A writ petition to High Court was made against the mentioned claim and the High Court issued
stay order until disposal through its verdict.
35 Claims by the Company not acknowledged as receivable
None as at 30 June 2016.
36. Commitments

Taka Taka
Letters of credit (Note-36.1) 834,151,922 899,900,721
Capital expenditure commitments 23,230,746 72,090,419
944,911,157 1,055,712,425
36.1 Letters of credits

Limit
The Hongkong and Shanghai Banking Corporation Limited 1,660,000,000 94,272,298 287,164,990
Citi Bank N.A. 768,000,000 58,483,995 16,186,797
5,598,000,000 834,151,922 899,900,721
37 Dividend paid to non-resident shareholders
No dividend payments were made to non-resident shareholders during the period from 01 January to 30 June 2016.
38. Disclosure as per requirement of Schedule XI, Part II of the Companies Act, 1994

38.1 Employee Position of the Renata Limited as per requirement of schedule XI, Part II, Para-3
The Company engaged 5,965 (5,473 in 2015) employees of which 4,005 (3,770 in 2015) is permanent employees and 1,960
(1,703 in 2015) is casual and temporary workers as required. All employees received total salary of above Tk. 36,000 per
annum.
38.2 Capacity utilization
Production capacity and current utilization as required by the Companies Act 1994, Schedule-XI, para-7. The Company
operates multi-products plants. As a result plant utilization is not comparable with capacity due to variation of product mix.
However, actual production and utilization for major product groups are as follows:
2016 (January-June) 2015 (January-June)

Half-year’s Actual Actual
Major product group/Unit Capacity production Utilization production Utilization
(In ’000) (In ’000) % (In ‘000) %
Sterile dry fill (injectable) / Vials 3,250 3,593 111% 2,504 77.05%
Sterile liquid (inj) / Vials / ampoule 5,250 6,314 120% 5,921 112.78%
Ointments / Tubes 750 273 36% 233 31.00%
Capsules and tablets / Cap / Tab 600,000 760,192 127% 710,460 143.53%
Oral liquid & dry syrup / Bottles 7,200 10,420 145% 9,377 130.23%
Water for injection / Ampoules 3,000 2,680 89% 2,523 175.48%
Premix feed supplement / Kg 2,250 3,218 143% 2,925 130.00%
Premix feed suppl. / Sachets 1,500 2,240 149% 2,037 135.77%
ORAL saline / Sachets 125,000 183,477 147% 58,561 162.67%
Potent Products / Tablets 1,000,000 1,389,810 139% 1,286,863 128.69%
39.1 During the period the following payments were made in foreign currency for imports,
calculated on CIF basis of:
Foreign Local
currency currency
US$ Taka
21,870,787 1,714,669,693
Active, raw and packaging materials 5,662,040 443,903,911
Machinery and spares 27,532,827 2,158,573,604
39.2 The following expenses were incurred during the period in foreign currency on account of:
Professional consultation fee USD 155,449

Export promotional expenses USD 464,765
Product registration USD 35,207
Export of goods on FOB USD 2,032,428
•112
40 Related party disclosures
During the period the Company carried out a number of transactions with related parties in the normal course of business on
an arm's length basis. Name of those related parties, nature of those transaction and their total value has been shown in the
table below in accordance with BAS-24 "Related Party Disclosures".
Transaction-2016 (January-June)
Opening Closing
Name of the party Relationship Nature of transactions balance Addition Adjustment balance
Taka Taka Taka Taka
Renata Agro Industries Ltd. Subsidiary Sale of goods 6,856,950 15,824,650 12,704,025 9,977,575
Advance payment 3,276,359 12,412,929 14,715,929 973,359
Short term loan 100,000,000 - 100,000,000 -
110,133,309 28,237,579 127,419,954 10,950,934
Purnava Limited Subsidiary Sale of goods - 25,565,605 25,565,605 -

Advance payment 129,125,902 49,116,938 34,833,378 143,409,462
129,125,902 74,682,543 60,398,983 143,409,462
Renata Oncology Limited Subsidiary Purchase of goods - 13,096,546 13,096,546 -

Advance payment 319,418,808 19,951,367 13,096,546 326,273,629
319,418,808 33,047,913 26,193,092 326,273,629
41 General
2) The comparative information has been disclosed in respect of the period from 01 January to 30 June 2016 for all
numerical information in the financial statements and also the narrative and descriptive information as found relevant for
understanding of the current period's financial statements.
3) To facilitate comparison, certain relevant balances pertaining to the previous period have been rearranged or reclassified
whenever considered necessary to conform to current period presentation.

Report and Financial Statements as at and for the year ended December 31, 2015
•114
After a slump that lasted several years, the year 2015 DOCs, decrease sharply. On the other hand, demand
was a period of resurgence for the Day-Old-Chick (DOC) for feed, the complementary product, correspondingly
business in Bangladesh. A combination of increased increases. Thus engaging in feed production is
demand and reduced supply due to farm closures, expected to partly offset losses that are likely to result
mopped off oversupply leading to healthy prices and from DOC segment of our business in bust periods.
profits. Net profit in 2015 was Taka nine crores which
offset the losses of previous years. We continue to perform satisfactorily in production of
Omega-3 and Vitamin-E table eggs. We produced 1.0
However, given that the DOC business is associated million pieces of Vitamin-E eggs and 1.8 million pieces
with extreme volatility, we have continued to diversify our of Omega-3 eggs in 2015. Increased marketing efforts
activities in related and complementary areas as by Purnava is likely increase demand for specialty eggs
outlined in the 2014 report. in 2016.
As an important part of our diversification efforts, we In essence, given the inherent volatility in the DOC
have tried to expand our feed business. Our continuing business, we must continue to broaden the scope of our
focus on improving feed quality resulted in FCR values activities to stabilize earnings.
which are comparable to those of market leaders.
Consequently, demand for our feed in the market is ON BEHALF OF THE BOARD OF DIRECTORS
increasing. We have initiated the process of appointing
agents for commercial feed since December 2015 with
increased attention to marketing and distribution.
We intend to ramp up the monthly toll production of

commercial feed from 125 MT to 1000 MT in 2016. The Kaiser Kabir
response from our agents, dealers and farmers and Chairman
results from our field trial indicate this to be an August 11, 2016
achievable target. It is to be noted that during peak
production years, prices for the primary product, that is

AUDITOR’S REPORT TO
THE SHAREHOLDERS
OF RENATA AGRO INDUSTRIES LIMITED
We have audited the accompanying financial statements of We believe that the audit evidence we
RENATA AGRO INDUSTRIES LIMITED, which comprise the have obtained is sufficient and
statement of financial position as at 31 December 2015, the appropriate to provide a basis for our
statement of profit or loss and other comprehensive income, audit opinion.
statement of changes in equity and statement of cash flows
for the year then ended, and a summary of significant Opinion
accounting policies and other explanatory information. In our opinion, the financial statements,
prepared in accordance with Bangladesh
Management's Responsibility for the Financial Statements Financial Reporting Standards (BFRSs),
Management of RENATA AGRO INDUSTRIES LIMITED is give a true and fair view of the financial
responsible for the preparation and fair presentation of these position as at 31 December 2015 and its
financial statements in accordance with Bangladesh financial performance and cash flows for
Financial Reporting Standards (BFRSs), and for such the year then ended and comply with the
internal control as management determines is necessary to Companies Act, 1994 and other
enable the preparation of financial statements that are free applicable laws and regulations.
from material misstatement, whether due to fraud or error.
Auditor's Responsibility (a) we have obtained all the information and
Our responsibility is to express an opinion on these financial explanations which to the best of our
statements based on our audit. We conducted our audit in knowledge and belief were necessary
accordance with Bangladesh Standards on Auditing (BSA). for the purposes of our audit and made
Those standards require that we comply with ethical due verification thereof;
requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial (b) in our opinion, proper books of account
as required by law have been kept by
the company so far as it appeared from
An audit involves performing procedures to obtain audit
our examination of those books; and
evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on our (c) the company's statement of financial
judgment, including the assessment of the risks of material position and statement of profit or loss
misstatement of the financial statements, whether due to and other comprehensive income dealt
fraud or error. In making those risk assessments, we with by the report are in agreement with
consider internal control relevant to the entity's preparation the books of account.
and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity's internal control.
K.M. HASAN & CO.
An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of
accounting estimates made by management, as well as Place: Dhaka
evaluating the overall presentation of the financial Dated: 21 April 2016
statements.
•116
Renata Agro Industries Limited
Amount in Taka
Non-current assets
Property, plant and equipments 5 383,326,517 397,019,442
Investments 7 54,116,149 50,790,693
444,572,894 448,858,141
Current assets
Inventories 8 69,297,346 61,655,473
Trade and other receivables 9 26,162,877 24,775,901
Advance, deposit and prepayments 10 8,695,502 5,253,540
140,068,780 95,348,109
Total assets 584,641,674 544,206,250

Equity and reserve
Share capital 12 42,000,000 42,000,000
Tax holiday reserve 46,643,337 36,588,358
Reserve for unrealized gain 21,959,534 18,634,078
Retained earnings 278,388,965 198,146,047
388,991,836 295,368,483
Non- Current liabilities
Deferred tax liability 13 4,393,145 -
Provision for gratuity 14 17,218,156 14,475,152
21,611,301 14,475,152
Current liabilities
Bank overdraft 15 - 14,519,679
Trade payables 16 25,793,193 24,877,937
Cost accrual 17 10,560,414 12,543,619
Provision and other liabilities 18 137,058,035 182,421,380
Provision for income tax 626,895 -
174,038,537 234,362,615
Total equity and liabilities 584,641,674 544,206,250
Annexed notes form an integral part of these financial statements
Director General Manager Chairman
Signed in terms of our separate report of even date annexed.

Dated, Dhaka K.M. HASAN & CO.
21 April 2016 Chartered Accountants

STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
Amount in Taka
2015 2014
01 January to 01 July to
Notes 100% Tax Exempted Fully Taxable Total Total
Revenue 19 307,909,813 207,724,129 515,633,942 298,003,169

Cost of sales 20 (180,146,916) (187,117,453) (367,264,369) (288,946,499)
GROSS PROFIT 127,762,897 20,606,676 148,369,573 9,056,670
Administrative expenses 21 (4,366,430) (5,854,806) (10,221,236) (9,738,848)

Marketing expenses 22 (3,325,507) (3,646,623) (6,972,130) (6,506,341)
Distribution expenses 23 (7,412,347) (7,478,678) (14,891,025) (14,041,896)
(15,104,284) (16,980,107) (32,084,391) (30,287,085)
OPERATING PROFIT/(LOSS) 112,658,613 3,626,569 116,285,182 (21,230,415)
Finance income 24 855,719 1,240,800 2,096,519 18,790,427

Finance expenses 25 (7,937,049) (5,020,069) (12,957,118) (21,682,640)
(7,081,330) (3,779,269) (10,860,599) (2,892,213)
Profit before contribution, BPPF 105,577,283 (152,700) 105,424,583 (24,122,628)
Contribution to BPPF (5,027,490) 7,272 (5,020,218) -
Profit/(loss) before income tax 100,549,793 (145,428) 100,404,365 (24,122,628)
Provision for income tax 26
Deferred tax - (4,393,145) (4,393,145) -
Current tax - (5,713,323) (5,713,323) -
- (10,106,468) (10,106,468) -
Net profit/(loss) after income tax 100,549,793 (10,251,896) 90,297,897 (24,122,628)
Other comprehensive income
Unrealized gain/(loss) on marketable securities - 3,325,456 3,325,456 18,634,078
Total comprehensive income/(loss) for the period/year 100,549,793 (6,926,441) 93,623,352 (5,488,550)
Basic Earnings Per Share (EPS) 27 215 (57)

•118
Amount in Taka
Unrealised
gain
Tax Holiday (Fair value Retained
Particulars Share Capital reserve reserve) Earnings Total
Balance as at 01 January 2015 42,000,000 36,588,358 18,634,078 198,146,047 295,368,483

Net Profit for the year 2015 - - - 90,297,897 90,297,897
Unrealized gain during the year - - 3,325,456 - 3,325,456
Transfer to tax holiday reserve - 10,054,979 - (10,054,979) -
Balance as at 31 December 2015 42,000,000 46,643,337 21,959,534 278,388,965 388,991,836

Unrealised
gain
Balance as at 01 January 2014 42,000,000 36,588,358 - 222,268,675 300,857,033
Net Profit /(loss) for the year 2014 - - 18,634,078 (24,122,628) (5,488,550)


Amount in Taka
A. CASH FLOWS FROM OPERATING ACTIVITIES 2015 2014

Collection from customers and others 516,343,485 304,395,312
Payment to suppliers and employees (353,619,976) (254,963,767)
Cash paid for operating expenses and others (80,338,592) (21,694,807)
Cash generated from operation 82,384,917 27,736,738
Income tax paid (5,178,890) -
Financial expenses (12,957,118) (21,682,640)
Net cash inflows from operating activities 64,248,909 6,054,098
B. CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipments - (9,314,439)

Capital work- in- progress (17,479,370) (1,048,006)
Investment - 5,527,686
C. CASH FLOWS FROM FINANCING ACTIVITIES
Bank overdraft paid (14,519,679) (1,694,417)

Net cash and cash equivalents inflows/(outflows) for the year (A+B+C) 32,249,860 (475,078)
Add: Opening cash and cash equivalents 3,663,195 4,138,273
Closing cash and cash equivalents 35,913,055 3,663,195

•120
AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2015
1. STRUCTURE OF THE COMPANY
1.1 Company profile

Renata Agro Industries Limited is a private company limited by shares incorporated on 07 September 1997 in Bangladesh
under the Companies Act, 1994.The shares of the company shall be under the control of the Directors of the company.
1.2 Registered Office and Principal Place of Business

The registered office of the Company is situated at Plot No. 01, Section - 07, Milk Vita Road, Mirpur, Dhaka-1216. The farm is
located at Barakashar, Bhaluka, Mymensingh.
2. NATURE OF BUSINESS ACTIVITIES

The principal activities of the company are to carry out business for production and sale of various agro based
products and poultry breeding & hatching and sale of poultry products. The company commenced its commercial operation
from October 1998.
3. PRINCIPAL ACCOUNTING POLICIES
3.1 Basis of Accounting:

The financial statements have been prepared under historical cost convention in accordance with Bangladesh Financial
Reporting Standards (BFRSs)
3.2 Compliance with Local Laws:

The financial statements have been prepared in compliance with requirements of the Companies Act, 1994 and other relevant
local laws and rules.
3.3 Component of the Financial Statements:

According to the Bangladesh Accounting Standards "BAS-1", "Presentation of Financial Statements" to complete set of
Financial Statements include the following components:
(a) Statement of Financial Position as at 31 December 2015.

(b) Statement of Profit or Loss and other Comprehensive Income for the year ended 31 December 2015.
(c) Statement of Changes in Equity for the year ended 31 December 2015.
(d) Statement of Cash Flows for the year ended 31 December 2015.
(e) Notes to the Financial Statements.
3.4 Risk and uncertainties for use of estimates in preparation of Financial Statements:
The preparation of financial statements in conformity with the Bangladesh Accounting Standards (BASs) require management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of financial statements, and revenues and expenses during the reported period. Actual results
could differ from those estimates. Estimates are used for accounting of certain items such as provision for doubtful accounts,
depreciation, taxes, reserves and contingencies.

3.5 Transactions with related parties
The Company has carried on transactions with related parties in the normal course of business
Balance as at
Name of related Addition Adjustment Balance as at
Relationship Nature 01 January
party during the year during the year 31 December 2015
2015
Renata Limited Parent Purchase 11,225,150 22,540,860 26,909,060 6,856,950
Land
Renata Limited Parent purchase 3,944,592 - 668,233 3,276,359
purpose
Short
Renata Limited Parent 150,000,000 50,000,000 100,000,000 100,000,000
term loan
Purnava Limited Subsidiary Sale 3,508,820 15,667,052 17,437,301 1,738,571

of parent
3.6 Reporting Period:

Financial statements of the Company cover the period from 01 January to 31 December 2015.
3.7 Property, Plant & Equipment :

Property, Plant & Equipments are stated at cost less accumulated depreciation in accordance with BAS 16 "Property, Plant
and Equipment." Cost represents cost of acquisition.
No depreciation is charged on land and land development. Depreciation on all other fixed assets is charged on straight line
method in amount sufficient to write off depreciable assets over their estimated useful life. Depreciation is charged for the full
year on assets acquisitioned during the first half of the year while half year depreciation is charged on assets acquired during
the second half of the year. The rates of depreciation are indicated in Note-5.
Depreciation has been allocated on farm overhead expenses, vitamin - E eggs expenses, omega-03 Project, administrative
expenses, distribution expenses, hatchery expenses, feed expenses and laboratory expenses proportionately. The allocation
of depreciation is indicated in Note-5.
3.8 Inventories:
Inventories comprise of parent stock -broiler, feed stock, medicine, feed mill ingredient, litter, generator fuel, LP gas, layer
eggs-03, omega-03 feed, commercial feed, commercial broiler feed and vitamin-E eggs . All these are stated at cost and
considered as realisable value. No due allowance for any obsolete or slow moving items have been accounted for.
3.9 Trade and other Receivables:

These are carried at original invoice amount. This is considered good and collectible.
3.10 Cash and Cash Equivalents:

According to BAS-7 " Statement of Cash Flows ", Cash comprises cash in hand and demand deposits and cash equivalents
are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value. BAS-1 "Presentation of Financial Statements" provides that Cash and Cash Equivalents
are not restricted in use. Considering the provisions of BAS-I & BAS-7, cash in hand and bank balance have been considered
as cash and cash equivalents.
3.11 Statement of Cash Flows

Statement of Cash Flows is prepared principally in accordance with BAS-7 "Statement of Cash Flows" and the cash flow from
operating activities has been presented under direct method.
•122
3.12 Trade and other Payables
Liabilities are recognised for amounts to be paid in future for goods and services received, whether or not billed by the
suppliers and service provider.
3.13 Revenue from Sales

Sales comprise the invoice value of goods supplied by the company and consists of local sales of products.
3.14 Revenue Recognition

The revenues are recognised under satisfying all the conditions for revenue recognition as provided in BAS-18 "Revenue
Recognition".
(i) Sales are recognized at the time of delivery of products from the farm whether billed or not.
(ii) Other sales are recognized at the time of delivery from the farm.
3.15 Tax exemption period

The company enjoys exemption from tax on income for 4 ( four) years from 01.07.2011 to 30.06.2015 according to 6th
schedule, Part-A, Para 42 of Income Tax Ordinance,1984.
3.16 Earnings Per Share (EPS)

The company has calculated Earnings Per Share (EPS) in accordance with BAS-33 "Earnings Per Share".
4. GENERAL
4.1 Figures have been rounded off to the nearest Taka.
4.2 Previous year's figures have been re-arranged / re-grouped and / or re-stated where necessary to conform to the current
year's financial presentation.
5. PROPERTY, PLANT AND EQUIPMENT
Amount in Taka
COST DEPRECIATION
Balance Addition Adjustment/ Balance Rate (%) Balance Charged Adjustment/ Balance Written
Particulars
as at during Disposal as at as at during Disposal as at Down Value
01.01.15 the year during 31.12.15 01.01.15 the year during 31.12.15 as at
the year the year 31.12.15
Freehold land and land development 107,769,245 475,880 - 108,245,125 - - - - - 108,245,125

Building on freehold land 246,533,788 1,559,346 - 248,093,134 5.0% 71,085,249 12,365,673 - 83,450,922 164,642,212
Semi pucca building on freehold land 1,741,817 - - 1,741,817 12.5% 1,741,817 - - 1,741,817 -
Plant & machinery 191,081,732 9,108,288 - 200,190,020 5.0% 86,055,333 9,973,560 - 96,028,893 104,161,127
Office equipments 8,711,209 253,634 - 8,964,843 12.5% 4,421,167 1,110,996 - 5,532,163 3,432,680
Automobiles and trucks 20,560,973 - - 20,560,973 20.0% 17,444,012 1,490,092 - 18,934,104 1,626,869
Furniture & fixture 2,995,040 - - 2,995,040 5.0% 1,626,784 149,752 - 1,776,536 1,218,504
Balance as at 31 December 2015 579,393,804 11,397,148 - 590,790,952 182,374,362 25,090,073 - 207,464,435 383,326,517
Amount in Taka
2015 2014
Allocation of depreciation
Farm overhead 19,696,729 20,284,962

Vitamin - E eggs expenses 333,875 -
Omega-03 Project 340,406 -
Administrative expenses 196,948 189,393
Distribution expenses 883,339 1,356,612
Hatchery expenses 2,800,082 2,414,598
Feed expenses 522,464 515,435
Laboratory expenses 316,230 316,226
25,090,073 25,077,226

Amount in Taka
6. CAPITAL WORK- IN-PROGRESS
2015 2014
Opening balance 1,048,006 79,167,217
Addition during the year 17,479,370 10,362,445
18,527,376 89,529,662
Capitalized as Property, plant and equipment (11,397,148) (88,481,656)
Closing balance 7,130,228 1,048,006
7. INVESTMENTS
Investment in share (Note-7.1) 40,366,149 37,040,693
Investment in Govt. savings certificates (Note-7.2) 13,750,000 13,750,000
54,116,149 50,790,693
7.1 Investment in share:

The following amounts are invested in listed companies for maintaining equivalent amount of Tax holiday reserve @
10% being exempted on net profit of Renata Agro Industries Limited.
2015 2014
Name of company Number of share Book Value Fair Value of Share Fair Value of Share
United Finance Ltd. 31,708 578,923 659,526 856,132
Bata shoe Ltd. 2,000 264,501 2,635,400 2,344,200
Square pharma Ltd. 142,834 13,896,710 36,236,986 32,820,194
United Commercial Bank Ltd. 18,037 2,600,218 384,188 440,408
Investment corporation of Bangladesh. 4,210 1,066,263 450,049 579,759
198,789 18,406,615 40,366,149 37,040,693
7.2 Investment in Govt. savings certificates (5 Years)

Name of Certificate Certificate No. Maturity Date
Purchase Date: 27.06.2011

BSP 163/11 0757543 27/6/2016 100,000 100,000
BSP 163/11 0059444 27/6/2016 500,000 500,000
BSP 163/11 0059445 27/6/2016 500,000 500,000
BSP 163/11 0059446 27/6/2016 500,000 500,000
BSP 163/11 0059447 27/6/2016 500,000 500,000
BSP 163/11 0047938 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047939 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047940 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047941 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047942 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047943 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047944 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047945 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047946 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047947 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047948 27/6/2016 1,000,000 1,000,000

BSP 2014/0714 0085345 09/08/2019 500,000 500,000
BSP 2014/0714 0857627 09/08/2019 100,000 100,000
BSP 2014/0714 1434173 09/08/2019 50,000 50,000
13,750,000 13,750,000
•124
Amount in Taka
8. INVENTORIES 2015 2014

Parent stock- broiler 52,767,451 52,657,268
Feed stock 552,915 920,510
Medicine 3,549,887 1,663,703
Feed mill Ingredient 9,939,764 5,120,645
Litter - 130,720
Generator fuel & LP gas 334,959 735,263
Layer eggs-03 247,170 353,170
Omega-03 feed 102,557 74,194
Commercial Feed 1,239,453 -
Commercial Broiler Feed 211,718 -
Vitamin-E Eggs 351,472 -
69,297,346 61,655,473
9. TRADE AND OTHER RECEIVABLES

Trade receivables (Note- 9.1) 4,431,264 11,040,120
Other receivables (Note - 9.2) 21,731,613 13,735,781
26,162,877 24,775,901
9.1 Aging of trade receivables
Receivables due below six months 3,101,885 7,728,084
4,431,264 11,040,120
9.2 Other receivables
Vitamin-E eggs 4,476,824 123,359
Hatching eggs - 2,869,298
Omega-03 eggs 3,966,840 5,085,701
Commercial feed 7,454,750 1,826,123
Savings certificate interest 5,833,199 3,831,300
21,731,613 13,735,781
10. ADVANCE, DEPOSIT AND PREPAYMENTS
Advances (10.1) 7,983,733 4,453,204
Prepayments (10.2) 711,769 800,336
8,695,502 5,253,540
10.1 Advances
Loan to employees 1,562,158 536,741
Advance income tax 3,939,167 3,846,705
Farm land rental 639,908 69,758
Advance for commercial feed factory rent 457,500 -
Advance for staff compensation 355,000 -
Advance for calender 150,000 -
Advance for agent seminer 880,000 -
7,983,733 4,453,204
10.2 Prepayments
Insurance premium 711,769 800,336
11. CASH AND CASH EQUIVALENTS

Cash in hand
At Farm office 1,891,405 1,245,556
At Head office 612,698 682,114
2,504,103 1,927,670

Amount in Taka
Balance with Banks 2015 2014

Pubali Bank Ltd 3,310,372 511,006
Janata Bank Ltd. 752,886 570,643
Islami Bank Bangladesh Ltd. 3,487,398 643,682
Dutch Bangla Bank Ltd. 3,138,379 10,194
Eastern Bank Limited 22,719,917 -
33,408,952 1,735,525
35,913,055 3,663,195
12. SHARE CAPITAL 2015 2014

Authorized Capital
1,500,000 ordinary shares of Tk. 100 each 150,000,000 150,000,000
Issued and Paid-up Capital
420,000 ordinary shares of Tk. 100 each 42,000,000 42,000,000
At 31 December 2015, shareholdings position of the company are as follows
Shareholders % of Share Holdings
Renata Limited 99.99 41,994,900 41,994,900

Mr. Syed S. Kaiser Kabir 0.01 5,100 5,100
100 42,000,000 42,000,000
13. DEFERRED TAX LIABILITY
Opening balance - -
Addition during the year 4,393,145 -
Closing balance 4,393,145 -
14. PROVISION FOR GRATUITY
Opening balance 14,475,152 11,785,906

17,691,152 14,641,906
Payment during the year (472,996) (166,754)
Closing balance 17,218,156 14,475,152
15. BANK OVERDRAFT

Eastern Bank Ltd.Cash Credit (A/C NO: 00405)-Limit 3 Crore - 14,519,679
16. TRADE PAYABLES

Renata Limited (Medicine) 6,856,950 11,225,150
ACI Limited 936,587 -
Novartis (Bangladesh) Ltd. 468,500 376,950
Mondol Enterprise 135,625 184,000
Agro Care 56,000 -
Bengal Protein & Fat Supplier Co. 882,615 -
Biswas Poultry & Fish Feeds Ltd. 922,052 -
Cedar bd.Ltd 79,500 1,310,850
Imperic International Ltd. 61,000 -
Nurunnahar Traders 313,500 -
•126
Amount in Taka
2015 2014
Orental Pharma Agro Vets Ltd. 16,800 -
Prime Poultry & Fish Feed Ltd. 440,000 -
Sainik Traders 1,226,250 -
Seven Circle (Bangladesh) Ltd. 316,000 -
Suguna Food & Feeds BD. Pvt.Ltd. 375,000 -
Univet Limited 125,560 -
M/S Hai & Sons - 173,542
Haque & Sons Enterprise - 1,370,501
Advance Bio-products Ltd. 90,250 43,500
Advance Animal Science Ltd. 209,225 74,480
Mika Enterprise - 77,000
FTDC Trade & Consultation 62,400 -
Bengal Overseas Ltd. 698,421 -
Bhai Bhai Enterprise 4,215,816 -
Al-Modena Traders 1,575,900
New Al-Amin Packaging 305,000 -
RX Nutribet 201,250 -
Bio labs 192,000 -
Grameen Distribution Ltd. 37,940 -
Hazi Abdul Karim 1,564,960 -
S.A Traders - 222,575
Al- Amin Packaging - 223,250
Income tax of employee - 1,500
Amin Trade & Engineering - 12,600
Color Woven Bag Industries Ltd. - 252,500
Akata Packaging 117,500 267,900
J.M.S.Instrument & Chemicals co. 4,550 5,880
S.S.Enterprise - 4,157,815
Innaco Agrovet Ltd. - 89,800
Poultry Consultant & Development Ltd. - 6,600
Power Stream 360,062 76,544
ABC Poultry 28,480 -
Modina Trading Corporation 2,917,500 4,725,000
25,793,193 24,877,937
17. COST ACCRUAL
Interest against short term loan (RL) 652,778 3,177,083

Accrued interest 89,150 -
Audit & consultancy fees 60,000 60,000
Leave encashment & bonus 9,758,486 9,306,536
10,560,414 12,543,619
18. PROVISION AND OTHER LIABILITIES

Provision (Note:18.1) 5,715,691 4,308,102
Other liabilites (Note:18.2) 131,342,344 178,113,278
137,058,035 182,421,380
18.1 Provision
Chicks carrying cost 4,512,961 4,308,102
Commercial feed carrying cost 1,202,730 -
5,715,691 4,308,102

Amount in Taka
18.2 Other liabilites 2015 2014

Renata Limited (Others) 3,276,359 3,944,592
Short term loan from Renata Limited 100,000,000 150,000,000
Short term loan from other sources 10,000,000 10,000,000
Payables to employees (Note-18.2.1) 10,444,194 5,516,899
Agent security deposit (Note-18.2.2) 7,620,291 8,083,514
Income tax 1,500 568,273
131,342,344 178,113,278
18.2.1 Payables to employees
Beneficiarys' Profit Participation Fund (Note-18.2.1.1) 7,940,093 3,012,798
Beneficiarys' Welfare Fund (Note-18.2.1.2) 2,504,101 2,504,101
10,444,194 5,516,899
18.2.1.1 Beneficiarys' Profit Participation Fund (BPPF)
Opening balance 3,012,798 3,180,228
8,033,016 3,180,228
Payment during the year (92,923) (167,430)
18.2.1.2 Beneficiarys' Welfare Fund (BWF)

Addition during the year - -
2,504,101 2,534,349
Payment during the year - (30,248)
18.2.2 Agent security deposit

Deposit during the year 914,349 786,765
8,997,863 8,983,809
Refund to the agent (1,377,572) (900,295)
2015
01 Jan. to 30 June 01 July to 31 Dec.
19. REVENUE
100% Tax Exempted Fully Taxable Total 2014
Broiler 215,841,911 115,569,864 331,411,775 213,950,315
Eggs 1,632,432 2,236,602 3,869,034 2,230,851
Cull birds 8,127,943 31,033,279 39,161,222 32,182,301
Commercial Feed 25,782,456 35,873,050 61,655,506 4,223,723
Hatching eggs 37,596,126 2,056,328 39,652,454 17,244,927
Commercial Broiler 2,803,944 1,810,591 4,614,535 695,446
Omega-03 12,465,680 12,766,813 25,232,493 28,497,054
Cattle 148,590 258,633 407,223 298,760
Vitamin-E eggs 5,090,777 6,676,174 11,766,951 428,162
Others 788,954 1,420,795 2,209,749 1,690,630
310,278,813 209,702,129 519,980,942 301,442,169
Less: Carrying cost 2,369,000 1,978,000 4,347,000 3,439,000
307,909,813 207,724,129 515,633,942 298,003,169
•128
2015 Amount in Taka
20. COST OF SALES
Feeds and Feed mill expenses 53,096,746 40,340,199 93,436,945 88,331,285
Medicine & vaccine 6,522,375 5,944,231 12,466,606 8,557,944
Litter 303,915 671,781 975,696 516,193
Loss of dead birds 1,584,907 3,150,602 4,735,509 5,099,225
Loss on sale of birds 6,866,998 22,146,444 29,013,442 25,354,778
Vitamin-E eggs expenses 4,494,547 6,040,677 10,535,224 616,257
Cattle feed 93,934 176,320 270,254 357,943
Commercial broiler expenses 3,156,481 1,456,470 4,612,951 1,386,454
Commercial feed expenses 22,685,823 33,488,472 56,174,295 -
Farm overhead (Note-20.1) 40,958,331 46,126,464 87,084,795 84,285,387
Omega - 03 Project (Note-20.2) 10,135,731 6,708,041 16,843,772 22,395,219
Hatchery expenses 7,174,562 6,394,348 13,568,910 13,692,291
Laboratory expenses 1,056,340 1,291,121 2,347,461 1,850,872
Amortization value of birds 22,016,226 13,182,283 35,198,509 36,502,651
180,146,916 187,117,453 367,264,369 288,946,499
20.1 Farm overhead

Salaries & wages 14,304,385 15,911,304 30,215,689 27,907,510
Telephone bill expenses 83,655 68,175 151,830 198,620
Entertainment 5,248 23,634 28,882 41,221
Repairs & maintenance 3,067,014 6,149,299 9,216,313 8,234,570
Fuel charges 683,458 663,442 1,346,900 1,556,806
Medical expenses 12,701 16,354 29,055 29,845
Donation & subscription 140,310 92,244 232,554 201,400
Gardening 304,650 247,150 551,800 169,488
Uniform expenses 171,568 215,978 387,546 297,597
Power (Generator fuel) 4,957,951 2,897,459 7,855,410 8,911,668
Electricity consumption 3,262,689 4,774,674 8,037,363 8,127,979
Staff lunch & snacks 23,713 21,749 45,462 21,221
Canteen expenses 1,530,895 1,960,593 3,491,488 3,227,866
Conveyance 71,095 83,140 154,235 144,840
Carrying 24,350 111,591 135,941 837,641
Insurance premium 711,783 690,252 1,402,035 1,475,738
Poultry equipments 13,480 247,044 260,524 241,216
Laboratory testing expense - 2,000 2,000 32,550
Stationery 324,529 539,476 864,005 1,055,730
Land revenue tax (Farm) 41,315 52,680 93,995 33,900
L.P. Gas - 12,319 12,319 92,680
Union parishad tax 63,661 39,880 103,541 85,159
Travelling expenses 109,644 7,590 117,234 25,850
Vehicle rent 405,661 319,367 725,028 120,838
Rental for farm 244,880 235,120 480,000 455,000
Sports and games 8,250 28,178 36,428 17,335
License fees 61,230 104,650 165,880 132,250
Training expenses 2,550 - 2,550 4,469
Consultant's fees - 10,000 10,000 3,250
Depreciation 10,146,421 9,550,308 19,696,729 20,284,962
Miscellaneous 181,245 1,050,814 1,232,059 316,188
40,958,331 46,126,464 87,084,795 84,285,387

2015 Amount in Taka
20.2 Omega-03 Project
Salaries & overhead expenses 722,856 644,811 1,367,667 1,250,139
Poultry equipment 13,000 - 13,000 -
Laboratory expenses - - - 41,463
Electricity consumption - 183,494 183,494 -
Feeds expenses 3,002,549 4,208,289 7,210,838 7,576,512
Eggs box 42,400 176,400 218,800 186,601
Carriages 179,811 39,939 219,750 595,063
Canteen expense 5,365 4,080 9,445 18,584
Eggs carrying expense 199,854 205,772 405,626 49,000
Conveyance 410 3,923 4,333 8,345
Stationery 26,836 28,049 54,885 61,782
Telephone expense 600 1,800 2,400 -
Cleaning expense - - - 5,963
Uniform expenses 1,280 100 1,380 9,043
Repairs & maintenance 31,927 67,934 99,861 100,718
Layer eggs purchases 5,908,843 274,717 6,183,560 12,491,806
Miscellaneous expenses - 761 761 200
Loss of dead birds - 21,262 21,262 -
Loss on sale of birds - 7,433 7,433 -
Amortization value of birds - 498,871 498,871 -
Depreciation - 340,406 340,406 -
10,135,731 6,708,041 16,843,772 22,395,219
21. ADMINISTRATIVE EXPENSES
Salaries and wages 3,367,276 4,018,988 7,386,264 7,050,371

Repair and maintenance 192,839 249,782 442,621 613,247
Fuel expenses 156,648 183,264 339,912 348,324
Stationery 60,815 87,979 148,794 117,871
Mobile set purchase - - - 7,110
Audit fees 69,000 11,500 80,500 103,500
Telephone bill 51,017 37,598 88,615 123,488
Entertainment 2,760 - 2,760 660
Travelling expenses - 3,380 3,380 28,797
Uniform expenses - 11,160 11,160 7,560
Conveyance 86,119 83,210 169,329 144,065
Games & sports 250 7,210 7,460 1,350
Donation & subscription 43,000 262,000 305,000 231,000
Canteen expenses 88,819 94,580 183,399 162,969
Medical expenses - 28,600 28,600 16,250
License renewal fees - 171,348 171,348 42,212
Crockery - - - 7,900
Cleaning expense 5,070 5,115 10,185 11,920
Insurance premium 15,900 15,900 31,800 31,800
Consultancy expenses 15,000 54,226 69,226 154,700
Internet / e-mail service 18,383 6,470 24,853 30,306
Legal fees 50,000 28,172 78,172 32,200
Tax 17,624 - 17,624 -
Miscellaneous 29,165 394,121 423,286 281,855
Depreciation 96,745 100,203 196,948 189,393
4,366,430 5,854,806 10,221,236 9,738,848
•130
2015 Amount in Taka
22. MARKETING EXPENSES
Salaries & wages 2,380,183 2,421,400 4,801,583 4,399,863
Entertainment 14,061 10,048 24,109 49,199
Medical expenses - - - 11,170
Telephone bill expenses 100,929 120,626 221,555 274,768
Stationery 4,577 21,591 26,168 9,656
Carriage & conveyance 16,845 1,590 18,435 8,600
Internet services 7,096 - 7,096 -
Traveling expenses 595,854 793,019 1,388,873 1,363,062
Repair & maintenance 75,830 42,690 118,520 118,136
Fuel expenses 62,230 78,672 140,902 116,460
Training expenses - - - 8,400
Courier services - - - 224
Insurance, road tax and fitness 44,464 225 44,689 -
Miscellaneous expenses 490 153,662 154,152 101,995
3,325,507 3,646,623 6,972,130 6,506,341
23. DISTRIBUTION EXPENSES
Salary and allowance 1,142,088 1,162,404 2,304,492 2,112,367

Entertainment 325 515 840 21,160
Medical expenses 257 - 257 1,343
Carriage and conveyance 9,930 20,710 30,640 35,954
Chicks box purchase 2,894,700 2,145,750 5,040,450 4,240,808
Telephone bill 25,650 26,110 51,760 22,816
Repair and maintenance 439,631 1,242,647 1,682,278 1,603,507
Fuel & lubricant 1,539,077 1,565,643 3,104,720 3,046,805
House rent for chicks 37,200 38,200 75,400 83,000
Stationery expenses 9,209 - 9,209 3,930
Traveling expenses 200 - 200 5,200
Chicks carrying expenses 421,058 507,580 928,638 914,089
Uniform for staff 8,550 1,100 9,650 -
Courier expenses 1,725 1,715 3,440 -
Medicine - - - 175,750
Vehicle insurance, fitness and road tax 252,514 72,368 324,882 -
Miscellaneous 47,720 163,960 211,680 275,520
Depreciation 459,448 423,891 883,339 1,356,612
7,412,347 7,478,678 14,891,025 14,041,896
24. FINANCE INCOME
Interest on Savings Certificate (Unrealized) 761,100 1,240,800 2,001,900 3,831,300

Interest from 5 years Bond investment - - - 467,400
761,100 1,240,800 2,001,900 4,298,700
Other income (Note 24.1) 94,619 - 94,619 14,491,727

855,719 1,240,800 2,096,519 18,790,427
24.1 Other income
Sale of share - - 14,150,275

Income from dividend 94,619 - 94,619 341,452
94,619 - 94,619 14,491,727

2015 Amount in Taka
25. FINANCE EXPENSES
Bank charges 29,390 33,661 63,051 68,009
Interest on short-term loan 6,425,832 3,360,646 9,786,478 18,105,945
Interest on overdraft (EBL) 127,012 - 127,012 736,431
Interest on loan from other sources 502,777 511,110 1,013,887 1,279,652
Interest on employees provident fund 852,038 1,114,652 1,966,690 1,492,603
7,937,049 5,020,069 12,957,118 21,682,640
26. PROVISION FOR INCOME TAX
Deferred Tax - - 4,393,145 -

Current Tax (Note:26.1) - 5,713,323 5,713,323 -
- 5,713,323 10,106,468 -
26.1 Current Tax
For the year ended 31 December 2015 - 626,895 626,895 -
For the year ended 31 December 2014 - 1,000,000 1,000,000 -
For the year ended 31 December 2013 - 3,886,428 3,886,428 -
For the year ended 31 December 2005 - 200,000 200,000 -
- 5,713,323 5,713,323 -
27. BASIC EARNING PER SHARE (EPS)

Profit/(loss) atributable to ordinary shareholders 90,297,897 (24,122,628)
Weighted avegare number of ordinary shareholders 420,000 420,000
215 (57)
28. PAYMENTS TO DIRECTORS AND OFFICERS

The aggregate amount paid (except directors' fees for attending board meetings) during the year to directors and officers
of theCompany are disclosed below: Directors Officers
Basic - 10,552,824
House rent - 4,561,176
Bonus - 2,638,206
Contribution to provident Fund - 1,880,323
Gratuity - 10,476,421
Medical expenses - 228,000
Conveyance allowance and transport - 570,000
- 30,906,950
29. EVENTS AFTER THE REPORTING PERIOD
29.1 The Board of directors in its meeting held on 21 April 2016 approved these audited financial statements of the company
for the year ended 31 December 2015 and authorised the same for issue.
29.2 No material events occurred after the date of statement of audited financial position, non-disclosure of which could affect
the ability of the users of these audited financial statements to make appropriate evaluation.
Dated, Dhaka
21 April 2016
•132
Report and Financial Statements as at and for the period ended June 30, 2016
133 •renata annual report 16

AUDITOR’S REPORT
TO THE SHAREHOLDERS OF
RENATA AGRO INDUSTRIES LIMITED
We have audited the accompanying financial statements of We believe that the audit evidence we
RENATA AGRO INDUSTRIES LIMITED, which comprise the have obtained is sufficient and
statement of financial position as at 30 June 2016, the appropriate to provide a basis for our
statement of profit or loss and other comprehensive income, audit opinion.
statement of changes in equity and statement of cash flows
for the period then ended, and a summary of significant Opinion
accounting policies and other explanatory information. In our opinion, the financial statements,
prepared in accordance with Bangladesh
Management's Responsibility for the Financial Financial Reporting Standards (BFRSs),
Statements Management of RENATA AGRO INDUSTRIES give a true and fair view of the financial
LIMITED is responsible for the preparation and fair position as at 30 June 2016 and its
presentation of these financial statements in accordance financial performance and cash flows for
with Bangladesh Financial Reporting Standards (BFRSs), the period then ended and comply with
and for such internal control as management determines is the Companies Act, 1994 and other
necessary to enable the preparation of financial statements applicable laws and regulations
that are free from material misstatement, whether due to We also report that:
fraud or error. (a) We also report that: we have obtained
all the information and explanations
Auditor's Responsibility which to the best of our knowledge and
Our responsibility is to express an opinion on these financial belief were necessary for the purposes
statements based on our audit. We conducted our audit in of our audit and made due verification
thereof.
accordance with Bangladesh Standards on Auditing (BSA).
Those standards require that we comply with ethical
(b) in our opinion, proper books of account
requirements and plan and perform the audit to obtain
as required by law have been kept by
reasonable assurance about whether the financial the company so far as it appeared from
statements are free from material misstatement. our examination of those books; and
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial (c) the company's statement of financial
statements. The procedures selected depend on our position and statement of profit or loss
judgment, including the assessment of the risks of material and other comprehensive income dealt
misstatement of the financial statements, whether due to with by the report are in agreement with
fraud or error. In making those risk assessments, we the books of account.
consider internal control relevant to the entity's preparation
design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity's internal control.
K.M. HASAN & CO.
An audit also includes evaluating the appropriateness of Chartered Accountants
accounting estimates made by management, as well as Place: Dhaka
evaluating the overall presentation of the financial Dated: 11 August 2016
statements.
•134
AS AT 30 JUNE 2016
Amount in Taka
ASSETS Notes 30 June 2016 31 December 2015
Non-current assets
Property, plant and equipments 5 387,168,576 383,326,517
Investments 7 66,675,126 54,116,149
468,768,829 444,572,894
Current assets
Inventories 8 88,622,455 69,297,346
Trade and other receivables 9 38,580,382 26,162,877
Advance, deposit and prepayments 10 15,370,091 8,695,502
152,534,539 140,068,780
Total assets 621,303,368 584,641,674

Equity and reserve
Share capital 12 42,000,000 42,000,000
Tax holiday reserve 46,643,337 46,643,337
Reserve for unrealized gain 23,373,791 21,959,534
Retained earnings 378,598,516 278,388,965
490,615,644 388,991,836
Non- Current liabilities

Provision for gratuity 14 19,728,569 17,218,156
31,800,911 21,611,301
Current liabilities
Bank overdraft 15 10,694,969 -

Trade payables 16 30,123,605 25,793,193
Cost accrual 17 11,034,100 10,560,414
Provision and other liabilities 18 34,419,607 137,058,035
Provision for income tax 12,614,532 626,895
98,886,813 174,038,537

11 August 2016 Chartered Accountants

STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 30 JUNE 2016
Amount in Taka
2016 2015
Notes 01 Jan.- 30 Jun. 01 Jan.- 30 Jun.
Revenue 19 357,456,250 307,909,813

Cost of sales 20 (207,516,005) (180,146,916)
GROSS PROFIT 149,940,245 127,762,897
Administrative expenses 21 (8,300,999) (4,366,430)

Marketing expenses 22 (5,558,019) (3,325,507)
Distribution expenses 23 (8,207,770) (7,412,347)
(22,066,788) (15,104,284)
OPERATING PROFIT/(LOSS) 127,873,457 112,658,613
Finance income 24 1,176,699 855,719

Finance expenses 25 (3,179,951) (7,937,049)
(2,003,252) (7,081,330)
Profit before contribution, BPPF 125,870,205 105,577,283
Contribution to BPPF (5,993,819) (5,027,490)
Profit/(loss) before income tax 119,876,386 100,549,793
Provision for income tax 26
Deferred tax (7,679,197) -
Current tax (11,987,638) -
(19,666,835) -
Net profit/(loss) after income tax 100,209,551 100,549,793

Unrealized gain/(loss) on marketable securities 1,414,257 -
Total comprehensive income/(loss) for the period/year 101,623,808 100,549,793
Basic Earnings Per Share (EPS) 27 238.59 239.40

•136
Amount in Taka
Unrealised
gain

Net Profit for the half year 2016 - - - 100,209,551 100,209,551
Transfer to tax holiday reserve - - - - -
Balance as at 30 June 2016 42,000,000 46,643,337 23,373,791 378,598,516 490,615,644

Unrealised
gain

Net Profit for the year 2015 - - - 90,297,897 90,297,897
Transfer to tax holiday reserve - 10,054,979 - (10,054,979) -


Amount in Taka
A. CASH FLOWS FROM OPERATING ACTIVITIES 30 June 2016 30 June 2015

Cash paid for operating expenses and others (128,389,525) (18,322,069)
Cash generated from operation 8,398,776 46,785,959
Income tax paid (6,000,001) (3,886,428)
Financial expenses (3,179,951) (7,937,049)
Net cash inflows from operating activities (781,176) 34,962,482
B. CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipments (2,796,957) (6,991,491)

Capital work- in- progress (21,923,560) -
Investment (11,144,720) -
C. CASH FLOWS FROM FINANCING ACTIVITIES
Bank overdraft received/paid 10,694,969 (14,519,679)

Net cash used in financing activities 10,694,969 (14,519,679)
Net cash and cash equivalents inflows/(outflows) for the year (A+B+C) (25,951,444) 13,451,312
Add: Opening cash and cash equivalents 35,913,055 3,663,195
Closing cash and cash equivalents 9,961,611 17,114,507

•138
1. STRUCTURE OF THE COMPANY
1.1 Renata Agro Industries Limited

is a private company limited by shares incorporated on 07 September 1997 in Bangladesh under the Companies Act,
1994.The shares of the company shall be under the control of the Directors of the company.
1.2 Registered Office and Principal Place of Business

The registered office of the Company is situated at Plot No. 01, Section - 07, Milk Vita Road, Mirpur, Dhaka-1216. The farm is
located at Barakashar, Bhaluka, Mymensingh.
2. NATURE OF BUSINESS ACTIVITIES

The principal activities of the company are to carry out business for production and sale of various agro based
products and poultry breeding & hatching and sale of poultry products. The company commenced its commercial operation
from October 1998.
3. PRINCIPAL ACCOUNTING POLICIES
3.1 Basis of Accounting

The financial statements have been prepared under historical cost convention in accordance with Bangladesh Financial
Reporting Standards (BFRSs)
3.2 Compliance with Local Laws

The financial statements have been prepared in compliance with requirements of the Companies Act, 1994 and other relevant
local laws and rules.
3.3 Component of the Financial Statements

According to the Bangladesh Accounting Standards "BAS-1", "Presentation of Financial Statements" to complete set of
(a) Statement of Financial Position as at 30 June 2016.

(b) Statement of Profit or Loss and other Comprehensive Income for the half year ended 30 June 2016.
(c) Statement of Changes in Equity for the half year ended 30 June 2016.
(d) Statement of Cash Flows for the half year ended 30 June 2016.
(e) Notes to the Financial Statements.
3.4 Risk and uncertainties for use of estimates in preparation of Financial Statements
The preparation of financial statements in conformity with the Bangladesh Accounting Standards (BASs) require management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of financial statements, and revenues and expenses during the reported period. Actual results
could differ from those estimates. Estimates are used for accounting of certain items such as provision for doubtful accounts,
depreciation, taxes, reserves and contingencies.

3.5 Transactions with related parties
The Company has carried out following transactions with related parties in the normal course of business.
Balance as at
Name of related Addition Adjustment Balance as at
Relationship Nature 01 January
party during the year during the year 30 June 2016
2016
Renata Limited Parent Purchase 6,856,950 15,824,650 12,704,025 9,977,575
Land
Renata Limited Parent purchase 3,276,359 12,412,929 14,715,929 973,359
purpose
Short
Renata Limited Parent term loan 100,000,000 - 100,000,000 -
Purnava Limited Subsidiary

Sale 1,738,571 9,915,882 7,698,229 3,956,224
of Parent
3.6 Reporting Period

Financial statements of the Company cover the period from 01 January to 30 June 2016.
3.7 Property, Plant & Equipment

Property, Plant & Equipments are stated at cost less accumulated depreciation in accordance with BAS 16 "Property, Plant
and Equipment." Cost represents cost of acquisition.
No depreciation is charged on land and land development. Depreciation on all other fixed assets is charged on straight line
method in amount sufficient to write off depreciable assets over their estimated useful life. Depreciation is charged for the full
year on assets acquisitioned during the first half of the year while half year depreciation is charged on assets acquired during
the second half of the year. The rates of depreciation are indicated in Note-5.
Depreciation has been allocated on farm overhead expenses, vitamin - E eggs expenses, omega-03 Project, administrative
expenses, distribution expenses, hatchery expenses, feed expenses and laboratory expenses proportionately. The allocation
of depreciation is indicated in Note-5.
3.8 Leased assets

In compliance with the BAS 17: Lease cost of assets acquired under finance lease along with related obligation have been
accounted for as assets and liabilities respectively of the company , and the interest relevant has been changed as expenses.
3.9 Inventories
Inventories comprise of parent stock -broiler, feed stock, medicine, feed mill ingredient, litter, generator fuel, LP gas, layer
eggs-03, omega-03 feed, commercial feed, commercial broiler feed and vitamin-E eggs . All these are stated at cost and
considered as realisable value. No due allowance for any obsolete or slow moving items have been accounted for.
3.10 Trade and other Receivables

These are carried at original invoice amount. This is considered good and collectible.
3.11 Cash and Cash Equivalents

According to BAS-7 " Statement of Cash Flows ", Cash comprises cash in hand and demand deposits and cash equivalents
are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value. BAS-1 "Presentation of Financial Statements" provides that Cash and Cash Equivalents
are not restricted in use. Considering the provisions of BAS-I & BAS-7, cash in hand and bank balance have been considered
as cash and cash equivalents.
•140
Statement of Cash Flows is prepared principally in accordance with BAS-7 "Statement of Cash Flows" and the cash flow from
operating activities has been presented under direct method.
3.13 Trade and other Payables

Liabilities are recognised for amounts to be paid in future for goods and services received, whether or not billed by the
suppliers and service provider.
3.14 Revenue from Sales

Sales comprise the invoice value of goods supplied by the company and consists of local sales of products.
3.15 Revenue Recognition

The revenues are recognised under satisfying all the conditions for revenue recognition as provided in BAS-18 "Revenue
Recognition".
(i) Sales are recognized at the time of delivery of products from the farm whether billed or not.
(ii) Other sales are recognized at the time of delivery from the farm.
3.16 Earnings Per Share (EPS)

The company has calculated Earnings Per Share (EPS) in accordance with BAS-33 "Earnings Per Share".
3.17 Current tax

3.18 Deferred tax

period(s) recognized in the current period. The deferred tax asset / income or liability / expense do not create a legal liability /
recoverability to and from the income tax authority. Deferred tax also arises due to revaluation of property, plant and
changes in equity.
3.19 Defined contribution plan

The Company operates a recognized provident fund scheme where employees contribute 10% of their basic salary with equal
contribution by the Company. The provident fund is being considered as defined contribution plan being managed by a Board
of Trustees.

4. GENERAL
4.1 Figures have been rounded off to the nearest Taka.
4.2 Previous year's figures have been re-arranged / re-grouped and / or re-stated where necessary to conform to the current
year's financial presentation.

5. PROPERTY, PLANT AND EQUIPMENTS Amount in Taka
COST DEPRECIATION
Balance Addition Adjustment/ Balance Rate (%) Balance Charged Adjustment/ Balance Written
Particulars
as at during Disposal as at as at during Disposal as at Down Value
01.01.16 the period during 30.6.16 01.01.16 the period during 30.6.16 as at
the period the period 30.6.16
Freehold land and land development 108,245,125 280,015 - 108,525,140 - - - - - 108,525,140

Building on freehold land 248,093,134 654,237 - 248,747,371 5.0% 83,450,922 6,238,439 - 89,689,361 159,058,010
Semi pucca building on freehold land 1,741,817 - - 1,741,817 12.5% 1,741,817 - - 1,741,817 -
Plant & machinery 200,190,020 7,743,989 - 207,934,009 5.0% 96,028,893 5,218,905 - 101,247,798 106,686,211
Office equipments 8,964,843 701,718 - 9,666,561 12.5% 5,532,163 567,089 - 6,099,252 3,567,309
Automobiles and trucks 20,560,973 7,496,599 - 28,057,572 20.0% 18,934,104 983,789 - 19,917,893 8,139,679
Furniture & fixture 2,995,040 49,060 - 3,044,100 5.0% 1,776,536 75,337 - 1,851,873 1,192,227
Balance as at 30 June 2016 590,790,952 16,925,618 - 607,716,570 207,464,435 13,083,559 - 220,547,994 387,168,576
Amount in Taka
Allocation of depreciation
2016 2015
Farm overhead 9,398,305 19,696,729

Vitamin - E eggs expenses 450,748 333,875
Omega-03 Project 536,810 340,406
Administrative expenses 357,241 196,948
Distribution expenses 512,964 883,339
Feed expenses 264,954 522,464
Laboratory expenses 158,112 316,230
13,083,559 25,090,073
Amount in Taka
6. CAPITAL WORK- IN-PROGRESS
29,053,788 18,527,376
Capitalized as property, plant and equipments (14,128,661) (11,397,148)
Closing balance 14,925,127 7,130,228
7. INVESTMENTS
Investment in share (Note-7.1) 41,780,406 40,366,149
Investment in Govt. savings certificates (Note-7.2) 13,750,000 13,750,000
Investment in Govt. bond ( 5 Years) (Note-7.3) 11,144,720 -
66,675,126 54,116,149
7.1 Investment in share:

The following amounts are invested in listed companies for maintaining equivalent amount of Tax holiday reserve @
10% being exempted on net profit of Renata Agro Industries Limited.
Name of Company Number of Share Book Value Fair Value of Share Fair Value of Share
United Finance Ltd. 31,7 34,878 578,923 610,365 659,526
Bata Shoe Ltd. 2,000 264,501 2,410,800 2,635,400
Square Pharma Ltd. 142,834 13,896,710 37,969,562 36,236,986
United Commercial Bank Ltd. 18,938 2,600,218 318,158 384,188
Investment C orporation of Bangladesh. 4,210 1,066,263 471,520 450,049
202,860 18,406,615 41,780,406 40,366,149
•142
7.2 Investment in Govt. savings certificates ( 5 Years ) Amount in Taka
Name of Certificate Certificate No Maturity Date 30 June 2016 31 December 2015

BSP 163/11 0757543 27/6/2016 100,000 100,000
BSP 163/11 0059444 27/6/2016 500,000 500,000
BSP 163/11 0059445 27/6/2016 500,000 500,000
BSP 163/11 0059446 27/6/2016 500,000 500,000
BSP 163/11 0059447 27/6/2016 500,000 500,000
BSP 163/11 0047938 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047939 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047940 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047941 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047942 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047943 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047944 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047945 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047946 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047947 27/6/2016 1,000,000 1,000,000
BSP 163/11 0047948 27/6/2016 1,000,000 1,000,000

BSP 2014/0714 0085345 09/08/2019 500,000 500,000
BSP 2014/0714 0857627 09/08/2019 100,000 100,000
BSP 2014/0714 1434173 09/08/2019 50,000 50,000
13,750,000 13,750,000
7.3 Investment in Govt. bond ( 5 Years)
Purchase Date: 28/06/2016 16/07/2020

BD0920011055 11,144,720 -
8. INVENTORIES
Parent stock- broiler 64,825,702 52,767,451
Feed stock 728,406 552,915
Medicine 2,907,932 3,549,887
Feed mill Ingredient 16,876,425 9,939,764
Litter 102,000 -
Generator fuel & LP gas 1,116,369 334,959
Layer eggs-03 376,780 247,170
Omega-03 feed 281,045 102,557
Commercial Feed 1,259,076 1,239,453
Commercial Broiler Feed - 211,718
Vitamin-E Eggs 148,720 351,472
88,622,455 69,297,346
9. TRADE AND OTHER RECEIVABLES
Trade receivables (Note- 9.1) 9,400,387 4,431,264

Other receivables (Note - 9.2) 29,179,995 21,731,613
38,580,382 26,162,877
9.1 Aging of trade receivables
Receivables due below six months 5,640,232 3,101,885
9,400,387 4,431,264
9.2 Other receivables
Vitamin-E eggs 1,195,229 4,476,824
Omega-03 eggs 2,916,921 3,966,840
Commercial feed 18,528,145 7,454,750
Savings certificate interest 6,539,700 5,833,199
29,179,995 21,731,613

Amount in Taka
10. ADVANCE, DEPOSIT AND PREPAYMENTS 30 June 2016 31 December 2015

Advances (10.1) 14,036,144 7,983,733
Prepayments (10.2) 1,333,947 711,769
15,370,091 8,695,502
10.1 Advances
Loan to employees 1,708,089 1,562,158
Advance income tax 9,939,167 3,939,167
Repairing 140,000 -
Farm land rental 309,908 639,908
Advance for commercial feed factory rent 1,327,500 457,500
Advance for staff compensation 255,000 355,000
Advance for calender 196,480 150,000
Advance for agent seminer 160,000 880,000
14,036,144 7,983,733
10.2 Prepayments
Insurance premium 1,333,947 711,769
11. CASH AND CASH EQUIVALENTS

Cash in hand
At Farm office 2,051,158 1,891,405
At Head office 976,021 612,698
3,027,179 2,504,103
Balance with Banks
Pubali Bank Ltd 2,781,942 3,310,372
Janata Bank Ltd. 483,310 752,886
Islami Bank Bangladesh Ltd. 1,798,287 3,487,398
Dutch Bangla Bank Ltd. 1,870,894 3,138,379
Eastern Bank Limited - 22,719,917
6,934,432 33,408,952
9,961,611 35,913,055
12. SHARE CAPITAL
Authorized Capital
1,500,000 ordinary shares of Tk. 100 each 150,000,000 150,000,000
Issued and Paid-up Capital
420,000 ordinary shares of Tk. 100 each 42,000,000 42,000,000
At 30 June 2016, shareholdings position of the company are as follows
Shareholders % of Share Holdings
Renata Limited 99.99 41,994,900 41,994,900

Mr. Syed S. Kaiser Kabir 0.01 5,100 5,100
100 42,000,000 42,000,000
13. DEFERRED TAX LIABILITY
Opening balance 4,393,145 -

Addition during the period 7,679,197 4,393,145
Closing balance 12,072,342 4,393,145
•144
Amount in Taka
14. PROVISION FOR GRATUITY
Opening balance 17,218,156 14,475,152

19,918,156 17,691,152
Payment during the period (189,587) (472,996)
Closing balance 19,728,569 17,218,156
15. BANK OVERDRAFT

Eastern Bank Ltd.Cash Credit (A/C NO: 00405)-Limit 3 Crore 10,694,969 -
16. TRADE PAYABLES

Renata Limited (Medicine) 9,977,575 6,856,950
ACI Limited 643,900 936,587
Novartis (Bangladesh) Ltd. 1,418,499 468,500
Mondol Enterprise - 135,625
Agro Care - 56,000
Bengal Protein & Fat Supplier Co. - 882,615
Biswas Poultry & Fish Feeds Ltd. - 922,052
Cedar bd.Ltd - 79,500
Imperic International Ltd. 61,000 61,000
A R Animal Health Ltd. 1,542,020 -
Nurunnahar Traders - 313,500
Orental Pharma Agro Vets Ltd. - 16,800
Prime Poultry & Fish Feed Ltd. - 440,000
Sainik Traders - 1,226,250
Seven Circle (Bangladesh) Ltd. - 316,000
Suguna Food & Feeds BD. Pvt.Ltd. - 375,000
Univet Limited 65,000 125,560
Advance Bio-products Ltd. 43,500 90,250
Advance Animal Science Ltd. 115,521 209,225
FTDC Trade & Consultation 90,000 62,400
Bengal Overseas Ltd. 50,350 698,421
Bhai Bhai Enterprise 1,771,291 4,215,816
Al-Modena Traders 2,544,811 1,575,900
Al-Modena Enterprise 326,436
New Al-Amin Packaging - 305,000
RX Nutribet 221,750 201,250
Bio labs 66,000 192,000
Blue Cross 295,931 -
Grameen Distribution Ltd. 10,000 37,940
Hazi Abdul Karim 3,715,700 1,564,960
Md. Shahidul Islam 730,080 -
K.M. Hasan & Co. 60,000
Power Stream 28,732 -
RFL Plastics Limited 56,400 -
Mouha Mega Power & Traders 9,180 -
Tanzil Trading 5,094,351 -
Islam Enterprise 39,500 -
Green Line Enterprise 229,820 -
Niloy Enterprise 57,000 -
Modena Trading Corporation 41,200 -

Amount in Taka
Akata Packaging 282,000 117,500

J.M.S.Instrument & Chemicals co. 53,890 4,550
Star Feed 286,600 -
Poultry Consultant & Development Ltd. 9,300 -
Power Stream - 360,062
ABC Poultry 186,268 28,480
Modina Trading Corporation - 2,917,500
30,123,605 25,793,193
17. COST ACCRUAL
Interest against short term loan (RL) - 652,778

Accrued interest - 89,150
Audit & consultancy fees - 60,000
Leave encashment & bonus 11,034,100 9,758,486
11,034,100 10,560,414
18. PROVISION AND OTHER LIABILITIES
Provision (Note:18.1) 7,077,755 5,715,691
Other liabilites (Note:18.2) 27,341,852 131,342,344
34,419,607 137,058,035
18.1 Provision
Chicks carrying cost 3,046,465 4,512,961
Commercial feed carrying cost 4,031,290 1,202,730
7,077,755 5,715,691
18.2 Other liabilites
Renata Limited (Others) 973,359 3,276,359
Short term loan from Renata Limited - 100,000,000
Short term loan from other sources - 10,000,000
Lease hire vehicle 2,598,017 -
Payables to employees (Note-18.2.1) 16,391,556 10,444,194
Agent security deposit (Note-18.2.2) 7,377,421 7,620,291
Income tax 1,500 1,500
27,341,852 131,342,344
18.2.1 Payables to employees
Beneficiarys' Profit Participation Fund (Note-18.2.1.1) 11,684,647 7,940,093
Beneficiarys' Welfare Fund (Note-18.2.1.2) 4,706,909 2,504,101
16,391,556 10,444,194
18.2.1.1 Beneficiarys' Profit Participation Fund (BPPF)
12,735,149 8,033,016
Adjustment (Previous year) (1,004,044) -
Payment during the period (46,458) (92,923)
Closing balance 11,684,647 7,940,093
18.2.1.2 Beneficiarys' Welfare Fund (BWF)

Addition during the period 1,198,764 -
3,702,865 2,504,101
Adjustment (Previous year) 1,004,044 -
Payment during the period - -
•146
Amount in Taka
18.2.2 Agent security deposit 30 June 2016 31 December 2015

Deposit during the period 460,000 914,349
8,080,291 8,997,863
Refund to the agent (702,870) (1,377,572)
2016 2015
01 Jan.-30 June 01 Jan.-30 June
19. REVENUE
Broiler 249,228,670 215,841,911

Eggs 1,101,730 1,632,432
Cull birds 11,433,051 8,127,943
Commercial Feed 65,049,956 25,782,456
Hatching eggs 12,418,410 37,596,126
Commercial Broiler 1,094,498 2,803,944
Omega-03 11,294,891 12,465,680
Cattle - 148,590
Vitamin-E eggs 6,678,101 5,090,777
Others 1,282,943 788,954
359,582,250 310,278,813
Less: Carrying cost 2,126,000 2,369,000
357,456,250 307,909,813
20. COST OF SALES

Feeds and Feed mill expenses 47,021,431 53,096,746
Medicine & vaccine 8,143,170 6,522,375
Litter - 303,915
Loss of dead birds 2,444,551 1,584,907
Loss on sale of birds 7,714,045 6,866,998
Cattle feed 284,838 93,934
Farm overhead (Note-20.1) 45,813,582 40,958,331
Omega - 03 Project (Note-20.2) 5,510,379 10,135,731
Vitamin-E eggs expenses 4,613,744 4,494,547
Commercial broiler expenses 1,148,030 3,156,481
Commercial feed expenses 58,717,439 22,685,823
Laboratory expenses 1,128,564 1,056,340
Amortization value of birds 18,677,347 22,016,226
207,516,005 180,146,916
20.1 Farm overhead
Salaries & wages 18,050,750 14,304,385
Telephone bill expenses 84,704 83,655
Entertainment 4,036 5,248
Repairs & maintenance 2,996,248 3,067,014
Fuel charges 599,975 683,458
Medical expenses 44,008 12,701
Donation & subscription 146,880 140,310

Amount in Taka
2016 2015
Gardening 212,951 304,650

Uniform expenses 301,216 171,568
Power (Generator fuel) 3,698,054 4,957,951
Electricity consumption 5,681,637 3,262,689
Staff lunch & snacks 21,663 23,713
Canteen expenses 2,056,728 1,530,895
Conveyance 77,830 71,095
Carrying 36,320 24,350
Poultry equipments 182,974 13,480
Laboratory testing expense 4,000 -
Stationery 425,313 324,529
Land revenue tax (Farm) - 41,315
L.P. Gas 183,064 -
Union parishad tax 15,000 63,661
Travelling expenses 3,500 109,644
Vehicle rent 60,419 405,661
Rental for farm 336,800 244,880
Sports and games 5,700 8,250
License fees 231,247 61,230
Training expenses - 2,550
Consultant's fees - -
Depreciation 9,398,305 10,146,421
45,813,582 40,958,331
20.2 Omega-03 Project
Salaries & overhead expenses 818,484 722,856

Poultry equipment - 13,000
Electricity consumption 238,783 -
Fuel expenses 297,736 -
Feeds expenses 2,829,005 3,002,549
Eggs box - 42,400
Carriages - 179,811
Canteen expense 6,250 5,365
Eggs carrying expense 158,198 199,854
Conveyance - 410
Stationery 71,713 26,836
Telephone expense 1,800 600
Uniform expenses 4,916 1,280
Repairs & maintenance 4,592 31,927
Layer eggs purchases - 5,908,843
Loss of dead birds 51,198 -
Loss on sale of birds 31,512 -
Amortization value of birds 459,382 -
Depreciation 536,810 -
5,510,379 10,135,731
•148
Amount in Taka
2016 2015
21. ADMINISTRATIVE EXPENSES 01 Jan.-30 June 01 Jan.-30 June
Salaries and wages 5,050,991 3,367,276

Repair and maintenance 265,348 192,839
Fuel expenses 277,279 156,648
Mobile set purchase 6,000 -
Audit fees 23,000 69,000
Telephone bill 55,563 51,017
Entertainment - 2,760
Uniform expenses 6,800 -
Conveyance 67,945 86,119
Games & sports 200 250
Donation & subscription 61,500 43,000
Canteen expenses 135,387 88,819
Medical expenses 392,586 -
License renewal fees 3,100 -
Crockery 2,700 -
Cleaning expense 4,875 5,070
Consultancy expenses - 15,000
Internet / e-mail service 14,346 18,383
Legal fees 57,500 50,000
Tax paid 1,361,748 17,624
Depreciation 357,241 29,165
8,300,999 4,366,430
22. MARKETING EXPENSES
Salaries & wages 3,048,382 2,380,183
Medical expenses 120,614 -
Telephone bill expenses 133,238 100,929
Carriage & conveyance 2,880 16,845
Internet services 5,416 7,096
Traveling expenses 819,842 595,854
Repair & maintenance 137,260 75,830
Fuel expenses 80,160 62,230
Insurance, road tax and fitness 50,840 44,464
Business promotional expense 990,000 -
Miscellaneous expenses 15,610 490
5,558,019 3,325,507
23. DISTRIBUTION EXPENSES
Salary and allowance 1,577,952 1,142,088
Entertainment 1,610 325
Medical expenses 1,480 257
Carriage and conveyance 24,525 9,930
Chicks box 2,658,349 2,894,700
Telephone bill 26,778 25,650

Amount in Taka
2016 2015
Repair and maintenance 769,805 439,631

Fuel & lubricant 1,597,282 1,539,077
House rent for chicks 40,400 37,200
Stationery expenses 26,986 9,209
Traveling expenses 1,900 200
Chicks carrying expenses 489,309 421,058
Uniform for staff 33,222 8,550
Courier expenses 2,035 1,725
Vehicle insurance, fitness and road tax 242,368 252,514
Vehicle insurance, fitness and road tax 242,368 252,514
8,207,770 7,412,347
24. FINANCE INCOME
Interest on Savings Certificate (Unrealized) 706,500 761,100

Other income (Note 24.1) 470,199 94,619
1,176,699 855,719
24.1 Other income
Sale of used vehicle 400,000 -

Income from dividend 70,199 94,619
470,199 94,619
25. FINANCE EXPENSES
Bank charges 37,681 29,390

Interest on short-term loan 1,611,389 6,425,832
Interest on overdraft (EBL) 14,399 127,012
Interest on loan from other sources 438,889 502,777
Interest on employees provident fund 1,077,593 852,038
3,179,951 7,937,049
26. PROVISION FOR INCOME TAX
Deferred Tax 7,679,197 -

Current Tax (Note:26.1) 11,987,638 -
19,666,835 -
26.1 Current Tax
For the year ended 30 June 2016 11,987,638 -
27. BASIC EARNINGS PER SHARE (EPS)
Profit/(loss) atributable to ordinary shareholders 100,209,551 100,549,793

Weighted avegare number of ordinary shareholders 420,000 420,000
238.59 239.40
•150
28. PAYMENTS TO DIRECTORS AND OFFICERS
The aggregate amount paid during the period to officers of the Company are disclosed below:
Amount in Taka
Basic 6,444,831
House rent 2,990,289
Bonus 9,667,247
Contribution to provident Fund 1,077,296
Gratuity 2,700,000
Medical expenses 144,000
Conveyance allowance and transport 336,000
23,359,663
29 Disclosure as per requirement of Schedule XI, Part II of the Companies Act, 1994
29.1 Employee Position of the Renata Agro Industries Limited as per requirement of schedule XI, Part II, Para-3
The Company engaged 294 employees of which 187 is permanent employees and 107 is casual and temporary workers
as required. All employees received total salary of above Tk. 36,000 per annum.
30.1 During the year, the following payments were made in foreign currency for imports, calculated on CIF basis of:
Foreign currency Local currency

US$ Taka
Machinery and spares 90,053 7,060,130
31.1 The Board of directors in its meeting held on 11 August 2016 approved these audited financial statements of the
company for the half year ended 30 June 2016 and authorised the same for issue.
31.2 No material events occurred after the date of statement of audited financial position, non-disclosure of which could affect
the ability of the users of these audited financial statements to make appropriate evaluation.
Dated, Dhaka
11 August 2016

•152
Purnava is finally beginning to show promising signs. A number of
exciting products were added to the product portfolio in 2015. All
these products have unique features that should allow these
brands to carve their own niches in the market. The full list of new
products is as follows:
1) A-Cerumen ear hygiene 2ml

2) Marimer unidose drops
3) Marimer Isotonic Spray
4) Marimer Isotonic baby Spray
5) Marimer Hypertonic Spray
6) Marimer hypertonic baby Spray
7) Diabetasol
8) Nutrilina 500mg Veg cap
9) Primavera 500mg Sg cap
10) Ginera 500mg Veg cap
11) Pregcare 5g sachet
12) Pregnova
13) Menova
A few more exciting products are due for launch during the last
quarter of 2016.
As Purnava is a start-up in the FMCG space, the requirement of

heavy upfront promotional expenditures necessarily implies that
the long-term business growth prospects should be judged
through turnover alone for the next few years. Profits will
eventually come, but not immediately. We however remain bullish
about Purnava.
We are pleased to note that the captain of the Bangladesh cricket

team, Mashrafe Bin Mortaza agreed to be the brand ambassador
for Purnava for the year 2016.
ON BEHALF OF THE BOARD OF DIRECTORS
Kaiser Kabir
Chairman
August 11, 2016

AUDITOR’S REPORT
PURNAVA LIMITED
We have audited the accompanying financial statements of Opinion
PURNAVA LIMITED which comprise the statement of financial In our opinion, the financial statements,
position as at 31 December 2015, statement of profit or loss prepared in accordance with Bangladesh
and other comprehensive income, statement of changes in Financial Reporting Standards (BFRS's),
equity and statement of cash flows for the year then ended and give a true and fair view of the financial
a summary of significant accounting policies and other position as at 31 December 2015 and its
explanatory information. financial performance and its cash flows for
the year then ended and comply with the
Management's Responsibility for the Financial Statements Companies Act,1994 and other applicable
Management of PURNAVA LIMITED is responsible for the laws and regulations.
preparation and fair presentation of these financial statements
in accordance with Bangladesh Financial Reporting Standards We also report that:
(BFRS's), and for such internal control as management (a) we have obtained all the information
determines is necessary to enable the preparation of financial and explanations which to the best of
statements that are free from material misstatement, whether our knowledge and belief were
due to fraud or error. necessary for the purposes of our
audit and made due verification
Auditor's Responsibility thereof;
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in (b) in our opinion, proper books of account
accordance with Bangladesh Standards on Auditing (BSA's). as required by law have been kept by
Those standards require that we comply with ethical the company so far as it appeared from
requirements and plan and perform the audit to obtain our examination of those books; and
reasonable assurance about whether the financial statements
are free from material misstatement. (c) the Company's statement of financial
position and statement of profit or loss
An audit involves performing procedures to obtain audit and other comprehensive income
evidence about the amounts and disclosures in the financial dealt with by the report are in
statements. The procedures selected depend on the auditor's agreement with the books of account.
judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation
design audit procedures that are appropriate in the K.M. HASAN & CO.
circumstances, but not for the purpose of expressing an Chartered Accountants
opinion on the effectiveness of the entity's internal control. An
Place: Dhaka
audit also includes evaluating the appropriateness of
Dated: 15 March 2016
accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our audit
opinion.
•154
Purnava Limited
Amount in Taka

Non-current assets
Property, plant and equipment, net 3 2,124,033 212,309
Current assets
Inventories 4 65,697,229 31,635,327
Trade receivables 5 30,381,536 31,542,217
Other receivables 6 10,305,857 -
Advance, deposits and prepayments 7 2,182,211 1,652,871
126,324,380 67,589,318
Total assets 128,448,413 67,801,627
Share capital 9 2,500,000 2,500,000
Retained earnings (7,681,008) 3,251,465
(5,181,008) 5,751,465
Current liabilities
Trade and other payables 10 131,718,526 61,505,068
Provision for taxation 11 1,910,895 545,094
133,629,421 62,050,162
(The annexed notes form an integral part of these financial statements.)
Director Chairman
(Signed in terms of our separate report of even date annexed.)

15 March 2016 Chartered Accountants

Purnava Limited
STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
Amount in Taka
2015 2014
Notes
Turnover 73,925,368 256,477,213

Cost of sales 12 (51,920,500) (239,297,009)
Gross Profit 22,004,868 17,180,204
Operating Expenses
Administrative, selling and distribution expenses 13 (31,000,838) (15,842,965)
Finance cost (74,111) (40,028)
Other income 14 48,503 -
Profit / (Loss) before tax (9,021,578) 1,297,211
Income tax expenses (1,910,895) (545,094)
Net Profit / (Loss) after tax for the year (10,932,473) 752,118
Other comprehensive income - -
Total comprehensive income (10,932,473) 752,118
The annexed notes form an integral part of these financial statements.
Director Chairman

•156
Purnava Limited
Amount in Taka
Share Retained
PARTICULARS Total
capital earnings
Balance as at 01 January 2015 2,500,000 3,251,465 5,751,465
Net Profit /(Loss) for the year - (10,932,473) (10,932,473)
BALANCE AS AT 31 DECEMBER 2015 2,500,000 (7,681,008) (5,181,008)
Balance as at 01 January 2014 2,500,000 2,499,347 (4,999,347)
Net Profit /(Loss) for the year - 752,118 (752,118)
BALANCE AS AT 31 DECEMBER 2014 2,500,000 3,251,465 (5,751,465)
Director Chairman


Purnava Limited
Amount in Taka
2015 2014
A. Cash flows from operating activities:

Payment of VAT (10,305,857) -
Cash generated from operation (48,489,416) 18,333,582
Finance cost (74,111) (40,028)
Payment of tax (1,910,896) (545,094)
Net cash flows / (used) in operating activities (50,474,423) 17,748,459
B. Cash flows from investing activities:
Purchase of property, plant and equipment (2,353,339) -

Sale proceeds of property, plant and equipment 55,000
Net cash flows / (used) in investing activities (2,298,339) -
C. Cash flows from financing activities:

Short term loan (repaid)/received (net) 67,771,407 (23,982,603)
Net cash flow / (used) in financing activities 67,771,407 (23,982,603)
D. Net cash increase/(decrease) for the year (A+B+C) 14,998,644 (6,234,142)
E. Opening cash and cash equivalents 2,758,903 8,993,045
F. Closing cash and cash equivalents (D+E) 17,757,547 2,758,903
Director Chairman

•158
Purnava Limited
AS AT & FOR THE YEAR ENDED 31 DECEMBER 2015
1 REPORTING ENTITY
1.1 Company profile

Purnava Limited is a private company limited by share incorporated in Bangladesh on 17 August 2004 under the
Companies Act 1994.
1.2 Registered office and principal place of business

The registered office of the Company is situated at Plot No.01, Milk Vita Road, Section-07, Mirpur, Dhaka-1216.

The principal activities of the company are to carry on the business of marketing and distribution of all kinds of consumer
goods, consumer durables, food items, sugar confectioneries, edible oils, beverages etc. raw materials, semi-finished
items, producers, goods and various other products of local or foreign origin and to engage in the business as traders,
importers, exporters, commission agents of all kinds of goods and services including pharmaceutical drugs and
medicines.
2. SIGNIFICANT ACCOUNTING POLICIES

The financial period of the company covers one year from 1 January 2015 to 31 December 2015 consistently.
2.2 Statement of compliance and Basis of preparation

The financial statements have been prepared in accordance with Bangladesh Financial Reporting Standards (BFRS's)
and Bangladesh Financial Reporting Standards (BFRS's) and as per the requirements of the Companies Act 1994.
2.3 Going concern

The company has adequate resources to continue in operation for the foreseeable future. For this reason the
management continue to adopt going concern basis in preparing the Financial Statements. The current credit facilities
and resources of the company provide sufficient funds to meet the present requirements of its existing businesses and
operations.
2.4 Regulatory compliance

The Company is required to comply with amongst others, the following laws and regulations:
The Companies Act 1994

The Income Tax Ordinance 1984
The Income Tax Rules 1984
The Value Added Tax (VAT) Act 1991
The Value Added Tax (VAT) Rules 1991

2.5 Component of the financial statements
According to the Bangladesh Accounting Standards "BAS"-1, "Presentation of Financial Statements" a complete set of
a) Statement of Financial Position as at 31 December 2015.

b) Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2015.
c) Statement of Changes in Equity for the year ended 31 December 2015.
d) Statement of Cash Flows for the year ended 31 December 2015.
e) Notes to the Financial Statements as at & for the year ended 31 December 2015.
2.6 Property, plant and equipment and depreciation

Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is charged on a straight line
method over the estimated useful life of each property, plant and equipment. Details are as follows:
2015 2014
Vehicle 5 years 5 years
Furniture & fixture 10 years 10 years
Office equipments 10 years 10 years
2.7 Trade receivable

Trade receivable at the Statement of Financial Position date are stated at amounts which are considered realizable.
2.8 Inventories
Inventories are valued at lower of cost and estimated net realizable value. The cost of inventories is valued at weighted
average cost method and includes expenditure for acquiring the inventories and bringing them to their existing location
and condition.

Cash and cash equivalents comprised cash in hand and cash at bank which were held and available for use of the
company without any restriction.

Statement of cash flows has been prepared in accordance with the of "BAS"-7, "Statement of Cash Flows " under the
direct method.
2.11 Revenue
Revenue is recognized upon invoicing the customers for goods sold and delivered net of returns and allowances and
trade discounts.
Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been transferred to
the buyer, the company has no managerial involvement of ownership of the goods, the amount of revenue and the cost
of the transaction can be measured reliably and it is probable that the economic benefit associated with the transactions
will flow to the company.
2.12 Current tax

2.13 Transactions with realated parties

The Company has carried on transactions with related parties in the normal course of business.
•160
Amount in Taka
COST DEPRECIATION
Balance Additions Disposal/ Balance Rate Balance Charged Disposal/ Balance Written
Particulars as at during Adjustment as at % as at during Adjustment as at down
01.01. the year during 31.12. 01.01. the year during 31.12. value as at
2015 the year 2015 2015 the year 2015 31.12.2015
Vehicles 4,732,091 2,300,419 - 7,032,510 20 4,643,070 395,741 - 5,038,811 1,993,699
Furniture and fixtures 35,528 - 35,528 10 17,942 3,553 - 21,495 14,033
Office equipments 347,710 52,920 99,000 301,630 10 242,008 35,824 92,503 185,329 116,301
Balance as at
5,115,329 2,353,339 99,000 7,369,668 4,903,020 435,118 92,503 5,245,635 2,124,033
31.12.2015
Balance as at
5,115,329 - - 5,115,329 3,988,178 914,842 - 4,903,020 212,309
31.12.2014

Finished goods 53,584,682 25,669,867
Packing materials 6,421,522 -
Inventory in Transit 5,691,025 5,965,460
65,697,229 31,635,327
5. TRADE RECEIVABLES
Trade receivables- unsecured 31,588,035 31,542,217

Less: Allowance for doubtful receivables (1,206,499) -
30,381,536 31,542,217
5.1 Trade receivables disclosure as per Schedule-XI, Part-1, of The Companies Act, 1994
Receivables due under six months 6,911,019 9,651,063

31,588,035 31,542,217

Amount in Taka
6. OTHER RECEIVABLES
2015 2014
Value Added Tax (VAT) recoverable 10,305,857 -
7. ADVANCE, DEPOSITS AND PREPAYMENTS
Advance AIT
Opening balance 568,143 663,845
Add: Paid during the year 1,910,895 545,094
2,479,039 1,208,939
Less: Set aside for corporate tax (545,094) (640,795)
Closing balance 1,933,945 568,143
Advance VAT 198,266 669,866

Advances to Employee 50,000 -
2,182,211 1,238,009
Prepayments
Prepaid advertisement - 414,862
2,182,211 1,652,871
8. CASH & CASH EQUIVALENTS
Cash in hand 50,000 14,540

Cash at bank :
HSBC, Gulshan Branch C/A # 001-217223-011 13,512,754 2,744,363
Bank Asia Limited 4,190,368 -
Sonali Bank Limited 4,425 -
17,757,547 2,758,903
9. SHARE CAPITAL
Authorized Capital:
2,000,000 Ordinary shares of Tk. 100 each 200,000,000 200,000,000
Issued, Subscribed, Called up & Paid up Capital

25,000 Ordinary shares of Tk. 100 each 2,500,000 2,500,000
Shareholding position of the Company was as follows

Name of the shareholders No. of Face
Shares Value
Renata Limited 24,999 100 2,499,900 2,499,900
Mr. Syed S. Kaiser Kabir 1 100 100 100
25,000 2,500,000 2,500,000
•162
Amount in Taka
10. TRADE AND OTHER PAYABLES 2015 2014

Local purchase 1,738,571 -
Withholding tax 176,651 14,633
Withholding VAT 654,404 118,692
Other finance from Renata Limited 129,125,900 61,354,493
131,718,526 61,505,068
11. PROVISION FOR TAXATION
Opening balance 545,094 640,795

Add: Provision made during the year 1,910,895 545,094
2,455,989 1,185,889
Less: Payment made during the year (545,094) (640,795)
Closing balance 1,910,895 545,094
12. COST OF SALES
Opening inventories (Finished goods & Packing material) 25,669,867 9,295,132

Add: Purchase 86,256,837 255,671,744
111,926,704 264,966,876
Less: Closing inventories (Finished goods & Packing material) 60,006,204 25,669,867
51,920,500 239,297,009
13. ADMINISTRATIVE, SELLING AND DISTRIBUTION EXPENSES
Salaries, wages and allowances 7,073,682 5,440,306

Advertisement 9,837,387 4,435,758
Travelling & conveyance 581,042 226,941
Fuel & lubricants 1,179,279 533,141
Field expenses 2,237,589 330,555
Meeting and corporate expenses 1,568,185 -
Sales promotion 3,181,445 1,559,014
Utilities 1,017,630 693,657
Insurance 83,932 160,662
Stationery & supplies 1,150,085 963,215
Provision for bad debts 1,206,499 -
Audit fees 23,000 17,250
Medical Expenses 258,151 123,419
Other overhead expenses 863,684 263,603
31,000,838 15,842,965

Amount in Taka
14. OTHER INCOME

2015 2014
Gain on disposal of property, plant & equipment 48,503 -
14.1 Gain on disposal of property, plant & equipment
Original cost Accumulated Net book Sale value Gain

depreciation value
99,000 92,503 6,497 55,000 48,503
15. DISCLOSURE AS PER REQUIREMENT OF SCHEDULE XI, PART II OF THE COMPANY ACT 1994
15.1 Employee Position of the Purnava Limited as per requirement of schedule XI, part II, Para 3
The company engaged 39 employees of which 26 are permanent employees and 13 are casual and temporary workers as
required. All employees received total remuneration of above Tk. 36,000 per annum.
16. PAYMENTS/ RECEIPTS IN FOREIGN CURRENCY
During the year the following payments were made in foreign currency for imports calculated on CIF basis of:
Foreign Local
currency currency
US$ Taka
Finished goods 461,453 36,605,056

461,453 36,605,056
•164
17. RELATED PARTY DISCLOSURE Amount in Taka
Transaction
Name of Party Relationship
Nature of Opening Addition Adjustment Closing
transaction balance balance
Renata Limited Parent Purchase of goods - 7,135,922 7,135,922 -

Advance received 61,354,493 136,279,913 68,508,505 129,125,901
61,354,493 143,415,835 75,644,427 129,125,901
Renata Agro Subsidiary of
Purchase of goods 3,508,820 15,667,052 17,437,301 1,738,571
industries Ltd. parent
3,508,820 15,667,052 17,437,301 1,738,571
18.1 The Board of directors in its meeting held on 15 March 2016 approved these audited financial statement of the company for the
year ended 31 December 2015 and authorised the same for issue.
18.2 No material events occurred after the date of statement of financial position, non-disclosure of which could affect the ability of
the users of these financial statements to make appropriate evaluation.
19. GENERAL
1) All the figures in the financial statements represent Bangladesh Taka currency (BDT) rounded off to the nearest integer.
2) The comparative information has been disclosed in respect of 2015 for all numerical information in the financial statements
and also the narrative and descriptive information as found relevant for understanding of the current year's financial statements.

•166
AUDITOR’S REPORT
PURNAVA LIMITED
We have audited the accompanying financial statements of Opinion
PURNAVA LIMITED which comprise the statement of financial In our opinion, the financial statements,
position as at 30 June 2016, statement of profit or loss and prepared in accordance with Bangladesh
other comprehensive income, statement of changes in equity Financial Reporting Standards (BFRS's),
and statement of cash flows for the period then ended and a give a true and fair view of the financial
summary of significant accounting policies and other position as at 30 June 2016 and its
explanatory information. financial performance and its cash flows for
the period then ended and comply with the
Management's Responsibility for the Financial Statements Companies Act 1994 and other applicable
Management of PURNAVA LIMITED is responsible for the laws and regulations.
preparation and fair presentation of these financial statements
in accordance with Bangladesh Financial Reporting Standards We also report that:
(BFRS's), and for such internal control as management (a) we we have obtained all the
determines is necessary to enable the preparation of financial information and explanations which
statements that are free from material misstatement, whether to the best of our knowledge and
due to fraud or error. belief were necessary for the
purposes of our audit and made due
Auditor's Responsibility verification thereof;
Our responsibility is to express an opinion on these financial (b) in our opinion, proper books of
statements based on our audit. We conducted our audit in account as required by law have
accordance with Bangladesh Standards on Auditing (BSA's). been kept by the company so far as
Those standards require that we comply with ethical it appeared from our examination of
requirements and plan and perform the audit to obtain those books; and
reasonable assurance about whether the financial statements
are free from material misstatement. (c) the Company's statement of financial
position and statement of profit or
An audit involves performing procedures to obtain audit loss and other comprehensive
evidence about the amounts and disclosures in the financial income dealt with by the report are in
statements. The procedures selected depend on our agreement with the books of
judgement, including the assessment of the risks of material account.
misstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, we consider
internal control relevant to the entity's preparation and fair
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of K.M. HASAN & CO.
the entity's internal control. An audit also includes evaluating Chartered Accountants
the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by Place: Dhaka
management, as well as evaluating the overall presentation of Dated: 11 August 2016
We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our audit
opinion.

Purnava Limited
AS AT 30 JUNE 2016
Amount in Taka
30 June 31 December
Non-current assets
Property, plant and equipment 3 1,996,642 2,124,033
Current assets
Inventories 4 61,985,914 65,697,229
Trade receivables 5 29,694,420 30,381,536
Other receivable 6 8,693,252 10,305,857
132,575,538 126,324,380
Total assets 134,572,180 128,448,413
Share capital 9 2,500,000 2,500,000
Retained earnings (18,960,396) (7,681,008)
(16,460,396) (5,181,008)
Current liabilities
Trade and other payables 10 148,744,857 131,718,526
151,032,576 133,629,421
(The annexed notes form an integral part of these financial statements.)
Director Chairman

•168
Purnava Limited
STATEMENT OF PROFIT OR LOSS AND OTHER
Amount in Taka
01 January 01 January
to 30 June to 30 June
2016 2015
Notes
Turnover 62,180,882 28,395,236

Cost of sales 12 (47,134,742) (20,745,371)
Gross Profit 15,046,140 7,649,865
Operating Expenses
Administrative, selling and distribution expenses 13 (25,891,199) (8,670,796)
Finance cost (57,505) (195,530)
Profit / (Loss) before tax (10,902,564) (1,216,461)
Income tax expenses (376,824) (790,485)
Net Profit / (Loss) after tax for the period (11,279,388) (2,006,946)
Total comprehensive income (11,279,388) (2,006,946)
The annexed notes form an integral part of these financial statements.
Director Chairman


Purnava Limited
Amount in Taka
Share Retained
PARTICULARS Total
capital earnings
Balance as at 01 January 2016 2,500,000 (7,681,008) (5,181,008)
Net Profit /(Loss) for the period - (11,279,388) (11,279,388)
BALANCE AS AT 30 JUNE 2016 2,500,000 (18,960,396) (16,460,396)
Balance as at 01 January 2015 2,500,000 3,251,465 5,751,465
Net Profit /(Loss) for the year - (10,932,473) (10,932,473)
BALANCE AS AT 31 DECEMBER 2015 2,500,000 (7,681,008) (5,181,008)
Director Chairman

•170
Purnava Limited
Amount in Taka
2016 2015

Payment of VAT (3,379,805) -
Cash generated from operation (21,116,951) (11,459,468)
Finance cost (57,505) (195,530)
Payment of tax (376,825) (805,485)
Net cash used in operating activities (21,551,281) (12,460,483)
Purchase of property, plant and equipment (120,435) (2,154,474)

Net cash used in investing activities (120,435) (2,154,474)

Short term loan received 14,283,562 24,062,903
Net cash provided from financing activities 14,283,562 24,062,903
D. Net increase/(decrease) in cash and cash equivalents for the year (A+B+C) (7,388,154) 9,447,946
E. Opening cash and cash equivalents 17,757,547 2,758,903
F. Closing cash and cash equivalents (D+E) 10,369,394 12,206,849
Director Chairman


Purnava Limited
1 REPORTING ENTITY
1.1 Company profile

Purnava Limited is a private company limited by share incorporated in Bangladesh on 17 August 2004 under the
Companies Act 1994.
1.2 Registered office and principal place of business

The registered office of the Company is situated at Plot No.01, Milk Vita Road, Section-07, Mirpur, Dhaka-1216.

The principal activities of the company are to carry on the business of marketing and distribution of all kinds of consumer
goods, consumer durables, food items, sugar confectioneries, edible oils, beverages etc. raw materials, semi-finished
items, producers, goods and various other products of local or foreign origin and to engage in the business as traders,
importers, exporters, commission agents of all kinds of goods and services including pharmaceutical drugs and
medicines.
2. SIGNIFICANT ACCOUNTING POLICIES

The financial period of the company covers six month from 1 January 2016 to 30 June 2016 consistently.
2.2 Statement of compliance and Basis of preparation

The financial statements have been prepared in accordance with Bangladesh Accounting Standards (BAS's) and
Bangladesh Financial Reporting Standards (BFRS's) and as per the requirements of the Companies Act 1994.
2.3 Going concern

The company has adequate resources to continue in operation for the foreseeable future. For this reason the
management continue to adopt going concern basis in preparing the Financial Statements. The current credit facilities
and resources of the company provide sufficient funds to meet the present requirements of its existing businesses and
operations.
2.4 Regulatory compliance

The Company is required to comply with amongst others, the following laws and regulations:
The Companies Act 1994

The Income Tax Ordinance 1984
The Income Tax Rules 1984
The Value Added Tax (VAT) Act 1991
The Value Added Tax (VAT) Rules 1991
•172
2.5 Component of the financial statements
According to the Bangladesh Accounting Standards "BAS"-1, "Presentation of Financial Statements" a complete set of
a) Statement of Financial Position as at 30 June 2016.

b) Statement of Profit or Loss and Other Comprehensive Income for the period ended 30 June 2016.
c) Statement of Changes in Equity for the period ended 30 June 2016.
d) Statement of Cash Flows for the period ended 30 June 2016.
e) Notes to the Financial Statements for the period ended 30 June 2016.
2.6 Property, plant and equipment and depreciation

Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is charged on a straight line
method over the estimated useful life of each property, plant and equipment. Details are as follows:
2016 2015
Vehicle 5 years 5 years
Furniture & fixture 10 years 10 years
Office equipments 10 years 10 years
2.7 Trade receivable

Trade receivable at the Statement of Financial Position date are stated at amounts which are considered realizable.
2.8 Inventories
Inventories are valued at lower of cost and estimated net realizable value. The cost of inventories is valued at weighted
average cost method and includes expenditure for acquiring the inventories and bringing them to their existing location
and condition.

Cash and cash equivalents comprised cash in hand and cash at bank which were held and available for use of the
company without any restriction.

Statement of cash flows has been prepared in accordance with the of "BAS"-7, "Statement of Cash Flows " under the
direct method.
2.11 Revenue
Revenue is recognized upon invoicing the customers for goods sold and delivered net of returns and allowances and
trade discounts.
Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been transferred to
the buyer, the company has no managerial involvement of ownership of the goods, the amount of revenue and the cost
of the transaction can be measured reliably and it is probable that the economic benefit associated with the transactions
will flow to the company.
2.12 Current tax

2.13 Transactions with realated parties

The Company has carried on transactions with related parties in the normal course of business.

Amount in Taka
COST DEPRECIATION
Balance Additions Disposal/ Balance Rate Balance Charged Disposal/ Balance Written
Particulars as at during Adjustment as at % as at during Adjustment as at down
01.01. the during 30.06. 01.01. the period during 30.06. value as at
2016 period the period 2016 2016 the period 2016 30.06.2016
Vehicles 7,032,510 - - 7,032,510 20 5,038,811 230,042 - 5,268,853 1,763,657
Furniture and fixtures 35,528 - - 35,528 10 21,495 1,777 - 23,272 12,256
Office equipments 301,630 120,435 - 422,065 10 185,329 16,007 - 201,336 220,729
Balance as at
7,369,668 120,435 - 7,490,103 5,245,635 247,826 - 5,493,461 1,996,642
30.06.2016
Balance as at
5,115,329 2,353,339 99,000 7,369,668 4,903,020 435,118 92,503 5,245,635 2,124,033
31.12.2015
Amount in Taka
30 June 31 December
Finished goods 55,495,761 53,584,682
Inventory in Transit 7,722 5,691,025
61,985,914 65,697,229
5. TRADE RECEIVABLES
Trade receivables- unsecured (Note: 5.1) 31,685,846 31,588,035

Less: Allowance for doubtful receivables (1,991,426) (1,206,499)
29,694,420 30,381,536
5.1 Trade receivables disclosure as per Schedule-XI, Part-1, of The Companies Act, 1994
Receivables due under six months 10,170,419 6,911,019

31,685,846 31,588,035
•174
Amount in Taka
30 June 31 December
6. OTHER RECEIVABLES
2016 2015
7. ADVANCE, DEPOSITS AND PREPAYMENTS
Advances 2,310,769 1,933,945

Advance Income Tax (Note: 7.1) 512,500 50,000
Advances to Employee (Note: 7.2) 182,788 198,266
Advance VAT 3,006,057 2,182,211
Prepayments
Prepaid advertisement 18,826,502 -
21,832,559 2,182,211
7.1 Advance income tax
Opening balance 1,933,945 568,143

Add: Paid during the year 376,824 1,910,895
2,310,769 2,479,038
Less: Set aside for corporate tax - 545,094
7.2 Advance to Employee
Opening balance 50,000 -

Advance paid during the year 462,500 50,000
Closing balance 512,500 50,000
8. CASH & CASH EQUIVALENTS
Cash in hand 50,000 50,000

Cash at bank :
HSBC, Gulshan Branch C/A # 001-217223-011 5,384,649 13,512,754
Bank Asia Ltd., Mohakhali Branch C/A # 02833000920 4,860,894 4,190,368
Sonali Bank Ltd., Custom House Branch C/A # 0130502001394 73,850 4,425
10,369,393 17,757,547

Amount in Taka
9. SHARE CAPITAL 30 June 31 December

2016 2015
Authorized Capital:
2,000,000 Ordinary shares of Tk. 100 each 200,000,000 200,000,000
Issued, Subscribed, Called up & Paid up Capital

25,000 Ordinary shares of Tk. 100 each 2,500,000 2,500,000
Shareholding position of the Company was as follows

Name of the shareholders No. of Face
Shares Value
Renata Limited 24,999 100 2,499,900 2,499,900
Mr. Syed S. Kaiser Kabir 1 100 100 100
25,000 2,500,000 2,500,000
10. TRADE AND OTHER PAYABLES
Local purchase Others 1,212,854 -

Local purchase - Renata Agro ( Note: 16 ) 3,956,224 1,738,571
Audit fee payable 23,000 23,000
Withholding tax 138,757 176,651
Other finance from Renata Limited ( Note: 16 ) 143,409,462 129,125,900
148,744,857 131,718,526
11. PROVISION FOR TAXATION
Opening balance 1,910,895 545,094

Add: Provision made during the year 376,824 1,910,895
2,287,719 2,455,989
Less: Adjustment made during the year - (545,094)
12. COST OF SALES 2016 2015
Opening inventories ( Finished goods ) 41,634,833 25,669,867
Add: Purchase 67,478,101 36,710,337
109,112,934 62,380,204
Less: Closing inventories ( Finished goods ) 61,978,192 41,634,833
47,134,742 20,745,371
•176
Amount in Taka
13. ADMINISTRATIVE, SELLING AND DISTRIBUTION EXPENSES
2016 2015
Advertisement 7,195,658 2,962,111
Travelling & conveyance 220,011 97,992
Fuel & lubricants 506,732 234,544
Field expenses 4,790,023 150,275
Sales promotion 4,238,848 646,910
Utilities 416,701 105,390
Insurance 89,008 83,932
Stationery & supplies 151,003 136,844
Provision for bad debts 784,928 -
Audit fees 23,000 17,250
Medical Expenses 179,183 68,883
Other overhead expenses 784,814 316,856
25,891,199 8,670,796
14. DISCLOSURE AS PER REQUIREMENT OF SCHEDULE XI, PART II OF THE COMPANY ACT 1994
14.1 Employee Position of the Purnava Limited as per requirement of schedule XI, part II, Para 3
The company engaged 53 employees of which 47 are permanent employees and 6 are casual and temporary workers as required.
All employees received total remuneration of above Tk. 36,000 per annum.
15. PAYMENTS/ RECEIPTS IN FOREIGN CURRENCY
15.1 During the year the following payments were made in foreign currency for imports calculated on CIF basis of:
Foreign Local
currency currency
US$ Taka
Finished goods 129,726 10,170,550

129,726 10,170,550

Amount in Taka
16. RELATED PARTY DISCLOSURE
Transaction
Name of Party Relationship
Nature of Opening Addition Adjustment Closing
transaction balance Taka Taka Taka balance Taka
Renata Limited Parent Purchase of goods - 25,565,605 25,565,605 -

129,125,901 74,682,543 60,398,983 143,409,461
Renata Agro Subsidiary of
Purchase of goods 1,738,571 9,915,882 7,698,229 3,956,224
Industries Limited parent
1,738,571 9,915,882 7,698,229 3,956,224
17.1 The Board of directors in its meeting held on 11 August 2016 approved the audited financial statement of the company
for the period ended 30 June 2016 and authorised the same for issue.
17.2 No material events occurred after the date of statement of audited financial position, non-disclosure of which could
affect the ability of the users of these audited financial statements to make appropriate evaluation.
18. GENERAL
1) All the figures in the financial statements represent Bangladesh Taka currency (BDT) rounded off to the nearest integer.
2) The comparative information has been disclosed in respect of 30 June 2016 for all numerical information in the financial
statements and also the narrative and descriptive information as found relevant for understanding of the current year's
•178

Renata Oncology began commercial operations in late
2015 with Sofenib (Sorafenib). The market response to
this launch has been encouraging. At least, three more
formulations are scheduled for launch in early 2016.
I am also happy to note that we successfully

synthesized the Active Pharmaceutical Ingredient
(API) for Sorafenib. This molecule is patent protected,
however given the TRIPS advantage that Bangladesh
enjoys, we shall market this product in Least
Developed Countries (LDCs) and countries that are
still outside the purview of the World Trade
Organisation (WTO).
ON BEHALF OF THE BOARD OF DIRECTORS
Kaiser Kabir
Chairman
August 01, 2016
•180
AUDITOR’S REPORT
RENATA ONCOLOGYLIMITED
We have audited the accompanying financial making those risk assessments, the auditor considers internal control
statements of “Renata Oncology Limited” relevant to the entity’s preparation and fair presentation of the
which comprise the Statement of Financial financial statements in order to design audit procedures that are
Position as at December 31, 2015, appropriate in the circumstances, but not for the purpose of
Statement of Profit and Loss and Other expressing an opinion on the effectiveness of the entity’s internal
Comprehensive Income for the year then control. An audit also includes evaluating the appropriateness of
ended and a summary of significant accounting policies used and the reasonableness of accounting
accounting policies and other explanatory estimates made by management, as well as evaluating the overall
notes. presentation of the financial statements.
Management Responsibilities for the We believe that the audit evidence we have obtained is sufficient and
Management of Renata Oncology Limited is
responsible for the preparation of financial Opinion
statements that give a true and fair view in In our opinion, the financial statements present fairly, in all material
accordance with Bangladesh Financial respects, the financial position of Renata Oncology Limited which
Reporting Standards and for such internal comprise the Statement of Financial Position as at December 31,
control as management determines is 2015, Statement of Profit and Loass and Other Comprehensive
necessary to enable the preparation of Income and all other related notes for the year then ended in
financial statements that are free from accordance with Bangladesh Financial Reporting Standards and
material misstatement, whether due to fraud comply with the Companies Act 1994 and other applicable laws and
or error. regulations.
Auditors' Responsibility We also report that:

Our responsibility is to express an opinion on (i) we have obtained all information and explanations which to
these financial statements based on our the best of our knowledge and belief were necessary along
audit. We conducted our audit in accordance with the bank statement for the purpose of our audit and
with Bangladesh Standards on Auditing. made due verification thereof and found them satisfactory;
Those standards require that we comply with
ethical requirements and plan and perform (ii) in our opinion, proper books of account as required by law
the audit to obtain reasonable assurance were kept by the company so far as it appeared from our
about whether the financial statements are examination of those books and proper returns adequate for
free from material misstatement. the purpose of our audit have been checked by us;
An audit involves performing procedures to (iii) the Statement of Financial Position and all other related notes
obtain audit evidence about the amounts and are dealt with by this report are in agreement with the books
disclosures in the financial statements. The of account and returns;
procedures selected depend on the auditors'
judgment including the assessment of the
risks of material misstatement of the financial Dated, Dhaka S.P. CHOWDHURY & CO.
statements, whether due to fraud or error. In March 15, 2016 Chartered Accountants

RENATA ONCOLOGY LIMITED
Renata Oncology Limited
AS AT DECEMBER 31, 2015 STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31, 2015
Notes Amount in Taka

Assets
2015 2014
Non-Current Assets
Total non-current assets 372,088,060 312,755,137
Current Assets
Inventories 7 21,808,930 4,982,608
Advances, deposits and prepayments 8 5,295,923 372,770
Cash & cash equivalent 9 6,132,652 604,222
Total current assets 33,237,506 5,959,600
Total Assets 405,325,565 318,714,737
Equity & Liabilities
Shareholders Equity
Ordinary share capital 10 80,000,000 80,000,000
Retained earnings 11 (9,518,915) -
70,481,085 80,000,000
Non-Current Liabilities
Deferred tax liability 12 8,577,545 -
Total non-current liabilities 8,577,545 -
Current Liabilities
Short term bank loan 13 3,911,784 -
Trade & other payables 14 322,349,207 238,714,737
Provision for taxation 15 5,945
Total current liabilities 326,266,935 238,714,737
Total Equity and Liabilities 405,325,565 318,714,737
Director Chairman
Signed as per our separate report on same date.
Dhaka, March 15, 2016 (S.P. CHOWDHURY & CO.)

•182
STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR
STATEMENTS
DECEMBER 31,OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
2015
FOR THE YEAR ENDED DECEMBER 31, 2015
2015 2014
Revenue 16 5,944,601 -
Cost of goods sold 17 5,944,601 -
Gross Profit - -
Administrative, selling and distribution expenses 18 931,458 -
Operating Profit/ (Loss) (931,458) -
Other Income - -
Financial Expenses 3,968 -
Profit/ (loss) before income tax (935,426) -
Tax expenses -
Current tax 5,945
Deferred tax 8,577,545 -
8,583,490 -
Profit/(loss) after tax for the year (9,518,915) -

Unrealized gain/(loss) on marketable securities - -
Total comprehensive income/(loss) for the year (9,518,915) -
Director Chairman


STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2015 OF CASH FLOWS
Amount in Taka
2015 2014
Collection from customers and other income 5,944,601 -

Cash generated from operating activities (20,118,663) (163,083,526)
Financing cost (3,968) -

Payment of tax (84,621) -
Net cash from operating activities (20,207,253) (163,083,526)

Net cash used in investing activities (60,010,594) -
Loan (repaid)/ received (net) 85,746,276 163,600,148

Net cash generated from financing activities 85,746,276 163,600,148
D. Net cash flows for the year (A+B+C) 5,528,430 516,622
E. Cash and cash equivalents at 1 January 604,222 87,600
F. Cash and cash equivalents at 31 December (D+E) 6,132,652 604,222
Director Chairman

•184
AS AT DECEMBER 31, 2015
Amount in Taka
Particulars
Share Capital Retained Earnings Total
Balance at January 01, 2015 80,000,000 - 80,000,000
Profit/(loss) after tax for the year (9,518,915) (9,518,915)
Balance as at December 31, 2015 80,000,000 (9,518,915) 70,481,085
Statement of Changes in Equity

as at December 31, 2014
Amount in Taka
Particulars
Profit/(loss) after tax for the year - - -
Balance as at December 31, 2014 80,000,000 - 80,000,000
Director Chairman


AS ON DECEMBER 31, 2015
1 Company Profile
Renata Oncology (the Company) is a private limited company incorporated on Twelfth August Two
Thousand and Twelve under the Companies Act 1994. The authorized capital of the Company is
Tk.1,000,000,000 divided into 100,000,000 ordinary shares of Tk.10 each with a paid up capital of the Tk.
80,000,000 divided into 8,000,000 ordinary shares of Tk.10 each. The address of the registered office of
the Company is Plot # 1, Milk Vita Road,Section-7 Mirpur Dhaka-1216.
Nature of Business Activities
The principal activities of the Company are carrying on business of manufacturing , marketing and
distributing of various oncology based products.
2 Significant Accounting Policies
2.1 These financial statements have been prepared under historical cost convention in accordance with
Bangladesh Financial Reporting Standards (BFRS’s). Accounting basis followed was accrual basis
incorporating transactions both cash and accruals.
2.2 Property, Plant and Equipment
Items of property, plant & equipment is recognized where it is probable that future economic benefits will
flow to the entity and their cost can be measured reliable.
Measurement at recognition
An items of Property, Plant & Equipment qualifying for recognition is measured at its cost. Cost
comprises:
* Purchase price, including all non recoverable duties and taxes but net of discounts.
* Costs directly attributable to bringing the asset to the location and condition necessary for it to be
capable of operating in the manner intended by the management.
2.3 Depreciation
Depreciation is commenced when the asset is in the location and condition necessary for it to be capable
of operating in the manner intended. Depreciation has not been charged on straight line method on all
property, plant and equipment that have already been put on operation.
•186
Cash and cash equivalents include cash at bank balance only .
i) Cash in Hand
We could not verify cash in hand as on December 31, 2015 as our appointment was after the closing
date. However, we have obtained a cash custody certificate from the Management confirming the balance
held by them as on that date.
ii) Cash at Bank

We have checked the bank transactions with pass book, cheque counterfoils deposit slips etc. and the
balance has been agreed with the book of accounts and a balance confirmation certificate has also been
obtained from the concerned bank.
These financial statement are prepared in Bangladesh Taka, which is the Company's functional currency.
3 Reporting period
The financial period of the company covers from January 01, 2015 to December 31, 2015.
4 General
Figures in this report have been rounded off to the nearest Taka.

Renata Oncology LimitedSCHEDULE OF
PROPERTY, PLANT & EQUIPMENT
Note-5 Amount in Taka

Cost Depreciation
Balance Addition Balance Balance Charged Balance W.D.V

Particulars
as at during the as at Rate as at during the as at 31. 12. 2015
01. 01. 2015 year 31. 12. 2015 01. 01. 2015 year 31. 12. 2015
Building - 89,308,438 89,308,438 - - 227,553 227,553 89,080,885

Plant and machinery 79,912,400 6,417,318 86,329,718 5% - 430,546 430,546 85,899,172
Office equipment - 974,086 974,086 10% - 10,283 10,283 963,803
Furniture - 1,093,790 1,093,790 20% - 9,289 9,289 1,084,501
Total 2015 79,912,400 97,793,632 177,706,032 - - 677,671 677,671 177,028,361
Total 2014 79,912,400 - 79,912,400 - - - - 79,912,400
Amount in Taka
6 Capital work-in-progress 2015 2014

Opening balance 232,842,737 73,719,168
Add. Addition during the year 60,010,594 159,123,569
292,853,331 232,842,737
Less: Capitalized as property, plant and equipment 97,793,632 -
195,059,699 232,842,737
6.1 The break down of capitalized property, plant and equipment is as follows:
Building 89,308,438 -
Plant and machinery 6,417,318 -
Office equipment 974,086 -
Furniture 1,093,790 -
97,793,632 -
•188
Amount in Taka
7 Inventories 2015 2014

This is made up as follows:
Finished Goods 4,152,562 -

Raw Materials 17,182,916 -
Packing Materials 228,278 -
Consumable stores and spares 245,175 -
Inventory-in-transit - 4,982,608
21,808,930 4,982,608
8 Advance, deposits & prepayments
LC Margin 129,928 -
Deferred Expense 130,365 372,770
Advance Income Tax 84,621
Security Money 4,951,009 -
5,295,923 372,770
9 Cash & cash equivalent
Cash in Hand Note- 9.1 - -

Cash at Bank Note- 9.2 6,132,652 604,222
6,132,652 604,222
9.1 Cash in hand
Cash at Head Office - -

- -
9.2 Cash at bank
HSBC, Dhaka, Bangladesh A/C: 001-256619-011 5,684,702 604,222

Bank Asia Ltd. Dhaka, Bangladesh A/C: 02833000989 447,950 -
6,132,652 604,222

Amount in Taka
10 Ordinary share capital 2015 2014

Authorized Share Capital 1,000,000,000 1,000,000,000

100,000,000 Ordinary Shares of Tk. 10 each 1,000,000,000 1,000,000,000
Issued, Subscribed & Paid- up Capital 80,000,000 80,000,000

8,000,000 Ordinary Shares of Tk. 10 each fully paid 80,000,000 80,000,000
Shareholders No. of Share Face Value Designation Value in Taka

Mr. Syed S. Kaiser Kabir 100 10 Share Holder 1,000
Renata Limited 7,999,900 10 Share Holder 79,999,000
Total: - - 80,000,000
Amount in Taka
11. Retained earnings 2015 2014

Opening Balance - -
Add: Net Profit/(Loss) after tax for the year (9,518,915) -
Closing Balance (9,518,915) -
12 Deferred tax liability
Opening balance - -
Prior year adjustment - -
8,577,545 -
Reduction of deferred tax on revaluation surplus - -

Closing balance 8,577,545 -
Deferred tax liability has been recognized in accordance with the provision of IAS 12 based on
temporary differences arising due to difference in the carrying amount of the assets or liabilities and its tax base.
•190
Carrying Taxable/
amount on (deductible)
Tax base
balance sheet temporary
date difference
Taka Taka Taka
For the year ended December 31, 2015
Property, plant and equipment - (Excluding land) 177,028,361 142,371,613 34,656,748

Revaluation surplus - - -
177,028,361 142,371,613 34,656,748
Gratuity provision - - -
Provision for obsolete and inventories - - -
Provision for doubtful debts - - -
Temporary difference 34,656,748
Deferred tax liability as on December 31, 2015 8,577,545
Property, plant and equipment - (Excluding land) 79,912,400 79,912,400 -

79,912,400 79,912,400 -
Temporary difference -
Deferred tax liability as on December 31, 2014 -
Amount in Taka
13. Short term bank loan 2015 2014

HSBC, Dhaka, Bangladesh A/C: 001-256619-011 3,911,784 -

Total 3,911,784 -

Amount in Taka
14. Trade & others payable 2015 2014

Trade Payable 2,274,919 1,130,421

Withholding VAT Payable 182,274 -
Inventory AP Accrual 450,206 -
Accrued Professional-Audit Fees 23,000 -
Payables to Renata Limited 319,418,808 237,584,316
- -
Total 322,349,207 238,714,737
14.1 Payables to Renata Limited
Opening balance 237,584,316 73,984,168

Add. Expenditure made during the year 81,834,492 163,600,148
319,418,808 237,584,316
Less: Refund/adjustment during the year - -
319,418,808 237,584,316
The above amount payable to Renata Limited for expenditure

incurred for the company on the balance sheet date.
15. Provision for taxation
Opening balance - -
Add: Provision made during the year 5,945 -
5,945 -
Less: Tax paid during the year - -
Closing balance 5,945 -
16. Revenue

Cash Sales 27,657 -
Sales to Renata 5,916,944 -
Total 5,944,601 -
•192
Amount in Taka
17. Cost of goods sold 2015 2014

Opening Work-in Process - -

Raw Materials Consumed Note-17.1 5,110,680 -
Salary, Wages & Allowance 394,676 -
Factory overhead Note-17.2 4,591,807 -
Less: Closing Work-in Process - -
Cost of Production 10,097,163 -
Add: Opening stock of finished goods - -
Cost of Goods Available for Sale 10,097,163 -
Less: Closing stock of finished goods 4,152,562 -
Cost of Goods Sold 5,944,601 -
Opening stock - -
Add: Purchase during the year 22,521,908 -
Total materials available 22,521,908 -
Less: Closing stock 17,411,228 -
Raw materials consumed 5,110,680 -
Electricity and fuel 2,110,748 -

Insurance 961,836 -
Rent 72,000 -
Travelling expenses 3,795 -
Repair & maintenance 514,566 -
Depreciation 677,437 -
Other overhead expenses 129,635 -
4,591,807 -
Salaries, wages and allowances 288,570 -

Meeting & corporate expenses 195,390 -
Traveling Expense 91,251 -
Audit fee 23,000 -
License & Fees 330,191 -
Depreciation 235 -
931,458 -

Amount in Taka
2015 2014
Foreign Local
currency currency
US$ Taka
19. Payments in foreign currency
Active, raw and packaging materials 33,733 2,648,041

Machinery and spares - -
33,733 2,648,041
20. Related party disclosures
Transaction
Nature of Opening Closing
Name of Party Relationship transaction balance Addition Adjustment balance
Taka Taka Taka Taka
Renata Limited Parent Sales of goods - 5,916,944 5,916,944 -

237,584,316 237,584,316 237,584,316 319,418,808
21 General
21.1 Directors responsibility statements
According to section 183 of Companies Act 1994 the Board of Directors takes
the responsibility for the preparation and presentation of these financial statements.
21.2 Contingent liabilities
There is no contingent liability on the date of statement of financial position.
21.3 Rounding off
Amounts appearing in these financial statements have been rounded off to the nearest Taka.
•194

AUDITOR’S REPORT
RENATA ONCOLOGYLIMITED
We have audited the accompanying financial statements, whether due to fraud or error. In making those risk
statements of “Renata Oncology Limited” assessments, the auditor considers internal control relevant to the
which comprise the Statement of Financial entity’s preparation and fair presentation of the financial statements
Position as at June 30, 2016, Statement of in order to design audit procedures that are appropriate in the
Profit or Loss and Other Comprehensive circumstances, but not for the purpose of expressing an opinion on
Income, Statement of Changes in Equity, the effectiveness of the entity’s internal control. An audit also
Statement of Cash flows for the period then includes evaluating the appropriateness of accounting policies used
ended and a summary of significant and the reasonableness of accounting estimates made by
accounting policies and other explanatory management, as well as evaluating the overall presentation of the
notes. financial statements.
Management Responsibilities for the We believe that the audit evidence we have obtained is sufficient and
Management of Renata Oncology Limited is
responsible for the preparation of financial Opinion
statements that give a true and fair view in In our opinion, the financial statements present fairly, in all material
accordance with Bangladesh Financial respects, the financial position of Renata Oncology Limited which
Reporting Standards and for such internal comprise the Statement of Financial Position as at June 30, 2016,
control as management determines is Statement of Profit and Loass and Other Comprehensive Income and
necessary to enable the preparation of all other related notes for the period then ended in accordance with
financial statements that are free from Bangladesh Financial Reporting Standards and comply with the
material misstatement, whether due to fraud Companies Act 1994 and other applicable laws and regulations.
or error.
Auditors’ Responsibility (i) we have obtained all information and explanations which to
Our responsibility is to express an opinion on the best of our knowledge and belief were necessary along
these financial statements based on our with the bank statement for the purpose of our audit and
audit. We conducted our audit in accordance made due verification thereof and found them satisfactory;
with Bangladesh Standards on Auditing.
Those standards require that we comply with (ii) in our opinion, proper books of account as required by law
ethical requirements and plan and perform were kept by the company so far as it appeared from our
the audit to obtain reasonable assurance examination of those books and proper returns adequate for
about whether the financial statements are the purpose of our audit have been checked by us;
free from material misstatement.
(iii) the Statement of Financial Position and all other related notes
An audit involves performing procedures to are dealt with by this report are in agreement with the books
obtain audit evidence about the amounts and of account and returns;
disclosures in the financial statements. The
procedures selected depend on the auditors’
judgment including the assessment of the Dated, Dhaka S.P. CHOWDHURY & CO.
risks of material misstatement of the financial August 01, 2016 Chartered Accountants
•196
AS AT JUNE 30, 2016
AS AT JUNE 30, 2016
Assets
30 June 31 December
2016 2015
Non-Current Assets
Total non-current assets 375,767,879 372,088,060
Current Assets
Inventories 7 29,218,663 21,808,930
Cash & cash equivalents 9 3,458,887 6,132,652
Total current assets 63,765,041 33,237,506
Total Assets 439,532,920 405,325,566
Equity & Liabilities
Shareholders' Equity
Ordinary share capital 10 80,000,000 80,000,000
Retained earnings 11 (13,365,738) (9,518,915)
66,634,262 70,481,085
Non-Current Liabilities
Total non-current liabilities 11,451,538 8,577,545
Current Liabilities
Short term bank loan 13 24,727,500 3,911,784
Trade & other payables 14 336,700,578 322,349,206
Provision for taxation 15 19,042 5,945
Total current liabilities 361,447,120 326,266,935
Total Equity and Liabilities 439,532,920 405,325,566
Director Chairman
Dhaka, August 01, 2016 (S.P. CHOWDHURY & CO.)


Renata Oncology
RENATA ONCOLOGY LIMITED Limited
STATEMENTS
STATEMENTSOF
OFPROFIT
PROFITOR
ORLOSS
LOSSAND
ANDOTHER
OTHERCOMPREHENSIVE INCOME
FOR
FORTHE PERIOD
THE ENDED
PERIOD JUNE 30,
ENDED JUNE201630, 2016
January-June January-June
2016 2015
Revenue 16 13,096,546 -
Cost of goods sold 17 13,096,546 -
Gross Profit - -
Administrative, selling and distribution expenses 18 740,054 -
Operating Profit/ (Loss) (740,054) -
Other Income - -
Financial Expenses 219,679 -
Profit/ (loss) before income tax (959,733) -
Tax expenses
Current tax 13,097 -
Deferred tax 12 2,873,993 -
2,887,090 -
Profit/(loss) after tax for the period (3,846,823) -

Unrealized gain/(loss) on marketable securities - -
Total comprehensive income/(loss) for the period (3,846,823) -
Director Chairman

•198
FOR THE PERIOD ENDED JUNE 30, 2016
Amount in Taka
2016 2015
Collection from customers and other income 13,096,546 -

Cash generated from operating activities (15,398,490) (26,235,880)
Financing cost (219,679) -

Net cash from operating activities (15,618,169) (26,235,880)

Net cash used in investing activities (7,871,312) -
Loan (repaid)/ received (net) 20,815,716 27,525,726

Net cash generated from financing activities 20,815,716 27,525,726
D. Net cash flows for the year (A+B+C) (2,673,765) 1,289,846
E. Opening cash and cash equivalents at January 01 6,132,652 604,222
F. Cash and cash equivalents at June 30 (D+E) 3,458,887 1,894,068

FOR THE PERIOD JANUARY 01 - JUNE 30, 2016
Amount in Taka
Particulars
Balance at January 01, 2016 80,000,000 (9,518,915) 70,481,085
Profit/(loss) after tax for the period (3,846,823) (3,846,823)
Balance as at June 30, 2016 80,000,000 (13,365,738) 66,634,262
Statement of Changes in Equity

Amount in Taka
Particulars
Profit/(loss) after tax for the year - (9,518,915) (9,518,915)
Balance as at December 31, 2015 80,000,000 (9,518,915) 70,481,085
Director Chairman

•200
1 Company Profile
Renata Oncology Limited (the Company) is a private limited company incorporated on Twelfth August Two
Thousand and Twelve under the Companies Act 1994. The authorized capital of the Company is
Tk.1,000,000,000 divided into 100,000,000 ordinary shares of Tk.10 each with a paid up capital of the Tk.
80,000,000 divided into 8,000,000 ordinary shares of Tk.10 each. The address of the registered office of the
Company is Plot-1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216.
Nature of Business Activities
The principal activities of the Company are manufacturing, marketing and distribution of various oncology
based products.
2 Significant Accounting Policies
2.1 The financial statements have been prepared under the historical cost convention in accordance with
Bangladesh Financial Reporting Standards (BFRSs) and accrual basis of accounting was followed for both
cash and accrual transactions.
2.2 Property, Plant and Equipment
Items of property, plant & equipment is recognized where it is probable that future economic benefits will
flow to the entity and their cost can be measured reliably.
Measurement at recognition
An items of property, plant & equipment qualifying for recognition is measured at its cost. Cost comprises:
* Purchase price, including all non recoverable duties and taxes but net of discounts.
* Costs directly attributable to bringing the asset to the location and condition necessary for it to be capable
of operating in the manner intended by the management,

2.3 Depreciation
Depreciation is commenced when the asset is in the location and condition necessary for it to be capable of
operating in the manner intended. Depreciation has been charged on straight line method on all property,
plant and equipment that have already been put on operation.
Cash and cash equivalents include cash at bank balance only .
i) Cash in Hand
We could not verify cash in hand as on June 30, 2016 as our appointment was after the closing date.
However, we have obtained a cash custody certificate from the Management confirming the balance held by
them as on that date.
ii) Cash at Bank

We have checked the bank transactions with pass book, cheque counterfoils deposit slips, etc. and the
balance has been agreed with the book of accounts. A balance confirmation certificate has also been
obtained from the concerned bank.
These financial statement are prepared in Bangladesh Taka, which is the Company's functional currency.
3 Reporting period
The financial period of the company covers from January 01, 2016 to June 30, 2016.
4 General
Figures in this report have been rounded off to the nearest Taka.
•202
Note-5: Schedule of Proptery, Plant & Equipment
Amount in Taka
Cost Depreciation
Balance Addition Balance Balance Charged Balance W.D.V

Particulars
as at during the as at Rate as at during the as at 30.06.2016
01. 01. 2016 Period 30.06.2016 01. 01. 2016 period 30.06.2016
Building 89,308,438 - 89,308,438 - 227,553 1,332,306 1,559,859 87,748,579

Plant and machinery 86,329,718 16,062,088 102,391,806 5% 430,546 2,733,799 3,164,345 99,227,461
Office equipment 974,086 768,670 1,742,756 10% 10,283 67,925 78,208 1,664,548
Furniture 1,093,790 296,756 1,390,546 20% 9,289 57,463 66,752 1,323,794
Total June 30, 2016 177,706,032 17,127,514 194,833,546 - 677,671 4,191,493 4,869,164 189,964,382
Total December 31, 2015 79,912,400 97,793,632 177,706,032 - - 677,671 - 177,028,361
Amount in Taka
30 June 31 December
6 Capital work-in-progress 2016 2015
Opening balance 195,059,699 232,842,737
Add: Additions during the period 7,871,312 60,010,594
202,931,011 292,853,331
Less: Capitalized as property, plant and equipment Note-6.1 17,127,514 97,793,632
185,803,497 195,059,699
6.1 The break down of capitalized property, plant and equipment is as follows:
Building - 89,308,438
Office equipment 768,670 974,086
Furniture 296,756 1,093,790
17,127,514 97,793,632

Amount in Taka
30 June 31 December
7 Inventories 2016 2015
Finished Goods 11,290,470 4,152,562

Raw Materials 16,209,353 17,182,916
Packing Materials 419,460 228,278
Consumable stores and spares 1,299,380 245,175
29,218,663 21,808,930
8 Advances, deposits & prepayments
LC Margin 30,591,389 129,928

Deferred Expense 130,365 130,365
Advance Income Tax 86,737 84,621
Prepaid Insurance 279,000 -
Security Money - 4,951,009
31,087,491 5,295,923
9 Cash & cash equivalents
Cash in Hand Note- 9.1 - -

Cash at Bank Note- 9.2 3,458,887 6,132,652
3,458,887 6,132,652
9.1 Cash in hand
Cash at Head Office - -

- -
9.2 Cash at bank
HSBC, Dhaka, Bangladesh A/C: 001-256619-011 3,115,678 5,684,702

Bank Asia Ltd. Dhaka, Bangladesh A/C: 02833000989 343,209 447,950
3,458,887 6,132,652
•204
Amount in Taka
30 June 31 December
10 Ordinary share capital 2016 2015
Authorized Share Capital

1,000,00,000 Ordinary Shares of Tk. 10 each 1,000,000,000 1,000,000,000
1,000,000,000 1,000,000,000
Issued, Subscribed & Paid- up Capital

8,000,000 Ordinary Shares of Tk. 10 each fully paid 80,000,000 80,000,000
80,000,000 80,000,000
Shareholders No. of Share Face Value Designation Value in Taka

Mr. Syed S. Kaiser Kabir 100 10 Share Holder 1,000
Renata Limited 7,999,900 10 Share Holder 79,999,000
Total - - 80,000,000
11 Retained earnings
Opening Balance (9,518,915) -

Add: Net Profit/(Loss) after tax for the period (3,846,823) (9,518,915)
Closing Balance (13,365,738) (9,518,915)
12 Deferred tax liability
Opening balance 8,577,545 -

Closing balance 11,451,538 8,577,545
Deferred tax liability has been recognized in accordance with the provision of IAS 12 based on temporary

Amount in Taka
30 June 31 December
2016 2015
Carrying Taxable/
Tax base
date difference
For the period ended June 30, 2016

189,964,383 143,695,540 46,268,842
Deferred tax liability as on June 30, 2016 11,451,538

177,028,361 142,371,613 34,656,748
Deferred tax liability as on December 31, 2015 8,577,545
13 Short term bank loan
HSBC, Dhaka, Bangladesh A/C: 001-256619-011 - 3,911,784

Bank Asia Ltd,Mohakhali Branch, Dhaka, Bangladesh 24,727,500 -
Total 24,727,500 3,911,784
•206
Amount in Taka
30 June 31 December
14 Trade & others payable 2016 2015
Trade Payable 8,896,708 2,274,919

Withholding VAT Payable 91,238 182,274
Inventory AP Accrual 1,367,218 450,206
Accrued Professional-Audit Fees 23,000 23,000
Payables to Renata Limited Note-14.1 326,273,629 319,418,808
Withholding Income Tax Payable 48,785 -
Total 336,700,578 322,349,206
14.1 Payables to Renata Limited
Opening balance 319,418,808 237,584,316

Add: Expenditure made during the period 6,854,821 81,834,492
326,273,629 319,418,808
Less: Refund/adjustment during the period - -
326,273,629 319,418,808
The above amount payable to Renata Limited for expenditure

incurred for the company on the balance sheet date.
Opening balance 5,945 -

Add: Provision made during the period 13,097 5,945
19,042 5,945
Less: Tax paid during the period - -
Closing balance 19,042 5,945
16. Revenue 2016 2015

Cash Sales - -
Sales to Renata 13,096,546 -
Total 13,096,546 -

Amount in Taka
17. Cost of goods sold
2016 2015
Opening Work-in Process - -

Raw Materials Consumed (Note- 17.1) 2,337,643 -
Salary, Wages & Allowance 1,006,186 -
Factory overhead (Note- 17.2) 16,890,626 -
Less: Closing Work-in Process - -
Cost of Production 20,234,454 -
Add: Opening stock of finished goods 4,152,562 -
Cost of Goods Available for Sale 24,387,016 -
Less: Closing stock of finished goods 11,290,470 -
Cost of Goods Sold 13,096,546 -
Opening stock 17,411,228 -

Add: Purchase during the period 1,555,228 -
Total materials available 18,966,456 -
Less: Closing stock 16,628,813 -
Raw materials consumed 2,337,643 -
Electricity and fuel 8,896,708 -

Insurance 279,000 -
Rent 12,000 -
Travelling expenses - -
Repair & maintenance 3,106,077 -
Depreciation 4,191,493 -
Electrical Supplies 15,750 -
General Expenses 50,028 -
16,890,626 -
Salaries, wages and allowances 592,654 -

Audit fee 23,000 -
License & Fees 99,400 -
740,054 -
•208
Amount in Taka
2016 2015
Foreign Local
currency currency
USD Taka
19. Payments in foreign currency
Active, raw and packaging materials 52,706 33,733

Machinery and spares - -
52,706 33,733
20 Employee Position
The Company engaged 10 permanent employees who received total salary of above Tk. 36,000 per annum.
21. Related party disclosures
Transaction
Name of Party Relationship Nature of Opening Closing
transactions balance Addition Adjustment balance
Taka Taka Taka Taka
Renata Limited Parent Sale of goods - 13,096,546 13,096,546 -

319,418,808 237,584,316 237,584,316 326,273,629
22 General
22.1 Directors responsibility statement
According to section 183 of Companies Act 1994 the Board of Directors takes the responsibility for
the preparation and presentation of these financial statements.
22.2 Contingent liabilities
None as at June 30, 2016
22.3 Rounding off
Amounts appearing in these financial statements have been rounded off to the nearest Taka.

as at and for the year ended December 31, 2015
•210
Report on the Consolidated Financial
Statements
on the auditors’ judgment, including the assessment of the risks of
We have audited the accompanying consoli-
material misstatement of the consolidated financial statements, whether
dated financial statements of Renata Limited,
due to fraud or error. In making those risk assessments, the auditors
which comprise the consolidated statement of
consider internal control relevant to the entity’s of the consolidated
financial position as at 31 December 2015 and
financial statements in order to design audit procedures that are
the consolidated statement of comprehensive
appropriate in the circumstances, but not for the purpose of expressing
income, consolidated statement of changes in
an opinion on the effectiveness of the entity’s internal control. An audit
equity and consolidated statement of cash
also includes evaluating the appropriateness of accounting policies used
flows for the year then ended, and a summary
and the reasonableness of accounting estimates made by management,
of significant accounting policies and other
as well as evaluating the overall presentation of the consolidated
explanatory information. The financial state-
ments of the Company’s subsidiaries - Renata
Agro Industries Limited, Purnava Limited and
We believe that the audit evidence we have obtained is sufficient and
Renata Oncology Limited have been audited
appropriate to provide a basis for our audit opinion.
by other auditors.
Opinion
Management’s Responsibility for the
Consolidated Financial Statements
In our opinion, the consolidated financial statements give a true and fair
view of the financial position of Renata Limited as at 31 December 2015
and of its financial performance and its cash flows for the year then
and fair presentation of these consolidated
ended in accordance with Bangladesh Financial Reporting Standards
financial statements in accordance with
(BFRSs).
Bangladesh Financial Reporting Standards
(BFRSs) and for such internal control as
management determines is necessary to
enable the preparation of consolidated finan-
a) we have obtained all the information and explanations which to the
cial statements that are free from material
best of our knowledge and belief were necessary for the purposes
misstatements, whether due to fraud or error.
of our audit and made due verification thereof;
b) in our opinion, proper books of account as required by law have
been kept by the Company so far as it appeared from our
these consolidated financial statements based
on our audit. We conducted our audit in
c) the group’s consolidated statement of financial position and
accordance with Bangladesh Standards on
consolidated statement of profit or loss and other comprehensive
Auditing (BSAs). Those standards require that
income along with the annexed notes 1 to 40 dealt with by the
we comply with ethical requirements and plan
report are in agreement with the books of account; and
assurance about whether the consolidated
d) the expenditure incurred and payments made were for the purpose
financial statements are free from material
of the Company’s business.
misstatements.

obtain audit evidence about the amounts and
disclosures in the consolidated financial Dated, Dhaka Hoda Vasi Chowdhury & Co.
statements. The procedures selected depend 30 April 2016 Chartered Accountants

RENATA LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Amount in Taka
ASSETS
Non-current assets Notes 2015 2014
Property, plant and equipment - at cost / revaluation less accumulated depreciation 5 9,258,341,054 8,583,836,713
Capital work-in-progress 6 925,455,341 1,091,369,805
Investment in shares and others 7 146,510,809 140,748,337
10,330,307,204 9,815,954,855
Current assets
Inventories 8 3,531,077,757 2,859,038,879
Trade and other receivables 9 2,081,986,059 1,668,911,580
6,222,397,386 5,001,158,562
TOTAL ASSETS 16,552,704,590 14,817,113,417

Share capital 12 529,535,140 441,279,290
Equity attributable to equity holders of Parent Company 9,717,036,890 7,988,726,538
Non-controlling interests 16 45,242 37,095
Total equity 9,717,082,132 7,988,763,633
Long term loans - net off current portion 17 328,914,992 782,510,495
Deferred liability - staff gratuity 18 17,218,156 214,744,662
1,114,891,648 1,543,152,267
Current liabilities
Short term bank loan and overdraft 20 3,237,408,003 3,335,934,433
Trade payables 21 282,437,519 138,368,359
Cost accruals 22 674,030,168 430,642,575
5,720,730,810 5,285,197,517
As per our report of same date.

•212
RENATA LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
Amount in Taka
Notes 2015 2014
Turnover 26 13,425,200,561 11,432,554,648
Cost of sales 27 (6,709,671,933) (5,718,007,920)
Gross profit 6,715,528,628 5,714,546,728
Administrative, selling and distribution expenses 28 (3,472,135,816) (2,840,575,863)

Other income 29 15,052,680 35,826,662
Operating profit 3,258,445,492 2,909,797,527
Finance costs 30 (294,889,964) (485,153,854)

Profit before contribution to WPPF 2,963,555,528 2,424,643,673
Contribution to WPPF (141,595,834) (116,546,147)

Profit before tax 2,821,959,694 2,308,097,526
Tax expenses
Current tax 25 (522,452,951) (548,391,630)
Deferred tax 19 (223,018,772) (72,213,882)
(745,471,723) (620,605,512)
Attributable to:
Equity holders of Parent Company 2,076,479,824 1,687,494,913
Non-controlling interests 8,147 (2,899)
Total profit after tax for the year 2,076,487,971 1,687,492,014

Unrealized gain on quoted shares 4,696,576 27,980,197
Attributable to:
Non-controlling interests 8,147 (638)


RENATA LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Amount in Taka
Share Revaluation Tax holiday Available for Retained Equity for Non- Total
Particulars Parent controlling
capital surplus reserve sale reserve earnings Company interest equity
Balance at 01 January 2014 353,023,430 157,477,415 286,084,982 3,764,204 5,737,513,851 6,537,863,882 37,733 6,537,901,615
Stock dividend issued 88,255,860 - - - (88,255,860) - - -
Cash dividend paid - - - - (264,767,574) (264,767,574) - (264,767,574)
Deferred tax on revaluation surplus - 157,382 - - - 157,382 - 157,382
Depreciation adjustment of revalued assets - (635,885) - - 635,885 - - -
Net profit after tax for the year - - - - 1,687,492,651 1,687,492,651 (638) 1,687,492,013
Unrealized gain on quoted shares - - - 27,980,197 - 27,980,197 - 27,980,197
Transferred to tax holiday reserve - - 46,840,445 - (46,840,445) - - -
Balance at 31 December 2014 441,279,290 156,998,911 332,925,427 31,744,401 7,025,778,509 7,988,726,538 37,095 7,988,763,633
Net profit after tax for the year - - - - 2,076,479,824 2,076,479,824 8,147 2,076,487,971
Unrealized gain on quoted shares - - 4,696,576 - 4,696,576 - 4,696,576
•214
RENATA LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
Amount in Taka
2015 2014

Payment of VAT (1,864,548,802) (1,610,525,618)
Cash generated by operation 2,674,159,339 2,528,746,890
Finance costs (294,889,964) (480,548,176)

Payment of tax (394,399,221) (294,246,010)
Purchase of property, plant and equipment (1,064,077,317) (1,165,799,600)

Investment in shares (2,437,015) (46,700,370)
Sale proceeds of property, plant and equipment 3,630,000 1,488,275
Net cash used in investing activities (1,062,884,332) (1,211,011,695)

Dividend paid (348,925,913) (261,719,425)

E. Opening cash and cash equivalents at 1 January 259,033,616 253,481,805
F. Closing cash and cash equivalents at 31 December (D+E) 350,677,490 259,033,616

RENATA LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Reporting Entity
1.1 Company profile

1.2 Principal Activities

products.
1.3 Subsidiary Companies
1.3.1 Renata Agro Industries Limited

Renata Agro Industries Limited, a subsidiary Company of Renata Limited, was incorporated on 7 September 1997 as a
private limited Company under the Companies Act 1994 with authorized share capital of Tk. 150,000,000 divided into
1,500,000 ordinary shares of Tk. 100 each. The Company commenced its commercial operation from October 1998. The
principal activities of the Company comprise of poultry breeding and hatching and selling of various agro based products.
1.3.2 Purnava Limited

Purnava Limited, a subsidiary Company of Renata Limited, was incorporated on 17 August 2004 as a private limited
Company under the Companies Act 1994 with authorized share capital of Tk. 200,000,000 divided into 2,000,000 ordinary
shares of Tk. 100 each. The Company commenced its commercial operation in 2009. The principal activities of the Company
are manufacturing, marketing and distribution of all kinds of consumer goods, consumer durables, food items, edible oils etc.
and to engage in the business as traders, importers, exporters, commission agents of all kinds of goods and services
including pharmaceutical products.
1.3.3 Renata Oncology Limited

Renata Oncology Limited, a subsidiary Company of Renata Limited, was incorporated on 12 August 2012 as a private limited
Company under the Companies Act 1994 with authorized share capital of Tk. 1,000,000,000 divided into 100,000,000
ordinary shares of Tk. 10 each. The principal activities of the Company are manufacturing, marketing and distribution of drugs
and medicines, allopathic and indigenous and particularly produce and prepare biological and non-biological drugs,
injectables of all kinds of tablets of all sorts, serum, vaccines syrup both medicated and non-medicated
2. Significant Accounting Policies
2.1 Basis of accounting

The financial statements have been prepared following Generally Accepted Accounting Principles (GAAP) under historical
cost convention and after due compliance with the Bangladesh Financial Reporting Standards (BFRS) and Bangladesh
Accounting Standards (BAS), the Companies Act 1994, the Securities and Exchange Rules 1987 and other applicable laws
and regulations. More specifically, the consolidated financial statements of the Company have been prepared in accordance
with the provisions of BFRS-10 "Consolidated Financial Statements".
2.2 Principles of consolidation

The financial statements of all the subsidiaries of the Company have been fully consolidated as the Company directly controls
more than 50% voting shares of these entities. The Company has made following investments in its subsidiaries:
Amount in Taka
Name on subsidiaries
2015 2014
Renata Agro Industries Limited 60,570,476 60,570,476
Purnava Limited 2,499,900 2,499,900
Renata Oncology Limited 79,999,000 79,999,000
Total 143,069,376 143,069,376
•216
2.3 Scope of consolidation
The name of subsidiaries and proportion of ownership interest are as follows:
Name on subsidiaries % of ownership interest

Renata Agro Industries Limited 99.988%
Purnava Limited 99.996%
Renata Oncology Limited 99.999%


- Purchase price, including all non recoverable duties and taxes but net off discounts; and
- Costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating
in the manner intended by the management.
2.4.2 Subsequent Costs

- Repairs and maintenance expenditure is recognized as expenditure when incurred; and
2.4.3 Depreciation
and no depreciation is charged for the month of disposal. The rates of depreciation and category of property, plant and
equipment are as follows:
The list of property, plant & equipment and related depreciation rates are given below:

Asset Type
2015 2014
Building 1.54-12.5 1.54-12.5
Automobiles 20-25 20-25
Furniture & fixture 5-20 5-20

An item of Property, Plant and Equipment is removed from the statement of financial position when it is disposed of or when
no future economic benefits are expected from its use or disposal. The gain or loss on the disposal of an item of property,
plant and equipment is included in the statement of income of the period in which the assets are disposed off.
2.4.5 Impairment
The carrying amounts of its assets are reviewed at each balance sheet date to determine whether there is any indication of
impairment loss. If any such indication exists, recoverable amount is estimated in order to determine the extent of the

BAS 16, Paragraph 34 requires that a periodical revaluation is to be carried out at regular interval if the property price is
volatile/significantly differs. It has been seen that for last few years, the property prices are showing downtrend and no
significant difference is expected. However, the management contemplates to review this matter and undertakes such
valuation exercise shortly.

construction/ acquisition is completed and measured at cost.

investments are measured at fair value and any changes in the fair value are recognized in the statement of comprehensive
income under the component of other comprehensive income for the period in which it arises.


2.9 Trade payables

2.10 Interest-bearing borrowings

Interest-bearing bank loans and overdrafts are recorded at the amount of proceeds received, net off transaction costs.
Borrowing costs directly attributable to the acquisition and construction of plant and equipment are capitalized as part of the
cost of those assets, until such time as the assets are ready for their intended use in accordance with BAS-23. All other
borrowing costs are charged to the statement of comprehensive income as an expense in the period in which they are
incurred.
2.11 Inventories
Cost of active materials, raw materials and packing materials is valued by using FIFO formula.
Cost of work-in-progress and finished stocks are arrived at by using FIFO cost formula including allocation of manufacturing
overheads related to bringing the inventories to their present condition. The Company uses standard cost method for
measurement of cost of finished goods.

Provisions are recognized in the financial statements in line with the “BAS-37” when-
- the company has a legal or constructive obligation as a result of past event;

The Company has created a Workers’ Profit Participation and Welfare Fund in compliance with “The Bangladesh Labour Act,
2006” and 5% of profit before charging such expenses is transferred to this fund.

2.14.1 Current Tax

•218
2.14.2 Deferred Tax
taxable for the events or transactions recognized in the statement of comprehensive income. A temporary difference is the
difference between the carrying amounts of assets and liabilities and its tax base amount in the statement of financial
position. Deferred tax asset or liability is the amount of income tax recoverable or payable in future period(s) recognized in
the current period. The deferred tax asset/ income or liability/ expense do not create a legal liability/ recoverability to and from
the income tax authority. Deferred tax also arises due to revaluation of property, plant and equipment. The resulting impact
of deferred tax assets/ liabilities on revaluation surplus is included in the statement of changes in equity.
2.15 Employees benefit obligation


2.15.3 Group insurance

2.16 Revenue
Revenue is recognized upon invoicing the customers for goods sold and delivered net of returns and allowances and trade
discounts.
the Company.

Foreign currency transactions are accounted at exchange rate prevailing on the date of transaction. Monetary assets and
liability denominated in foreign currencies at reporting date are translated at rates ruling at the statement of financial position
date. All exchange differences are charged/ credited to the statement of comprehensive income.

The Company represents basic earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated as the profit
or loss attributable to the ordinary shareholders of the Company divided by the weighted average number of ordinary shares
outstanding during the year.
2.19 Financial Risk Management

performance.
best practices.

2.19.1 Credit risk

price.
damage to the Company's reputation. Typically, management ensures that it has sufficient cash and cash equivalent to meet
expected operational expenses, including the servicing of financial obligation through preparation of the cash forecast,
prepared based on time line of payment of the financial obligation and accordingly arrange for sufficient liquidity / fund to
make the expected payment within due date.
2.19.3 Market risk

a. Currency risk
The Company is exposed to currency risk on certain revenues and purchase such as revenue from foreign customers and
import of raw material, machineries and equipment. The majorities of the Company’s foreign currency transactions are
denominated in USD and relate to procurement of raw material, machineries and equipment from abroad.

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate because of changes
in market interest rates. Renata Limited takes on exposure to the effects of fluctuations in the prevailing levels of market
interest rates on both its fair value and cash flow risks. Interest margins may increase as a result of such changes but may
reduce losses in the event that unexpected movements arise.

position and statement of comprehensive income.
3.2 Basis of Consolidation

The financial statements of the Company and its subsidiaries, as mentioned in note-1.3, have been consolidated in
accordance with Bangladesh Accounting Standard BFRS-10 “Consolidated Financial Statements”. Figures used in the
consolidated financial statements are based on the audited financial statements of Renata Agro Industries Limited, Purnava
Limited and Renata Oncology Limited audited by other auditors. Intra-group balances, and any unrealized income and
expenses arising from intra-group transactions have been eliminated while preparing the consolidated financial statements.
Unrealized gains arising from transactions with equity account of investees have been eliminated against the investment to
the extent of the parent Company’s interest in the investee. Unrealized losses were eliminated in the same way as unrealized
gains, but only to the extent that there was no evidence of impairment.
The consolidated financial statements are prepared to a common reporting year ended on 31 December 2015.
3.3 Reporting Framework and Compliance thereof

& Exchange Rules 1987, the Listing Regulations of Dhaka Stock Exchange (DSE) and other relevant local laws as
International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs).
•220
financial information presented in Taka has been rounded off to the nearest integer.

The financial period of the Company covers one year from 1 January to 31 December consistently.
3.6 Comparative Information and Rearrangement thereof


The preparation of financial statements in conformity with Bangladesh Accounting Standards requires management to make
judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses, and disclosure requirements for contingent assets and liabilities during and at the date of
In particular, significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the
most significant effect on the amounts recognized in the financial statements include depreciation, inventory valuation,
accrued expenses and other payables.
3.8 Going concern

The Company has adequate resources to continue in operation for foreseeable future. For this reason the directors continue

The Statement of Cash Flows has been prepared in accordance with the requirements of BAS-7 “Statement of Cash Flows”.
3.10 Events after the Reporting Period

In compliance with the requirements of BAS-10 “Events after the Reporting Period” post statement of financial position events
that provide additional information about the Company’s position at the statement of financial position date are reflected in
the financial statements and events after the statement of financial position date that are not adjusting events are disclosed
in the notes when material.
4. Directors’ responsibility statement


5. Consolidated property, plant and equipment - at cost / revaluation less accumulated depreciation Amount in Taka
Cost/Revaluation Depreciation
Balance Disposal/ Balance Balance Disposal/ Balance Written

Particulars as at Additions adjustment as at Rate as at Charged adjustment as at down value as
1 January during during 31 December % 1 January for during 31 December at 31 December
2015 the year the year 2015 2015 the year the year 2015 2015
Freehold land
At cost 1,098,614,176 11,286,125 - 1,109,900,301 - - - - 1,109,900,301
On revaluation 179,132,078 - - 179,132,078 - - - - 179,132,078
1,277,746,254 11,286,125 - 1,289,032,379 - - - - 1,289,032,379
Buildings
At cost 2,915,301,164 323,774,153 - 3,239,075,317 1.54-5 313,754,091 99,747,724 - 413,501,815 2,825,573,502
On revaluation 41,291,251 - - 41,291,251 1.54-5 11,786,903 635,885 - 12,422,788 28,868,463
2,956,592,415 323,774,153 - 3,280,366,568 325,540,994 100,383,609 - 425,924,603 2,854,441,965
Plant and machinery 5,779,263,295 778,955,772 - 6,558,219,067 5-20 1,354,017,519 395,075,570 - 1,749,093,089 4,809,125,978
Automobiles 202,216,691 56,943,331 8,205,000 250,955,022 20-25 161,283,064 24,524,815 8,205,000 177,602,879 73,352,143
Office equipment 244,222,490 34,278,744 99,000 278,402,234 10 -12.5 110,512,931 24,475,908 92,503 134,896,336 143,505,898
Furniture and fixtures 107,482,739 24,753,659 - 132,236,398 5-20 32,332,663 11,021,044 - 43,353,707 88,882,691
Total 2015 10,567,523,884 1,229,991,784 8,304,000 11,789,211,668 1,983,687,171 555,480,946 8,297,503 2,530,870,614 9,258,341,054
Total 2014 8,317,903,854 2,253,400,030 3,780,000 10,567,523,884 1,555,065,774 432,198,897 3,577,500 1,983,687,171 8,583,836,713
Amount in Taka
6. Capital work in-progress
2015 2014
Opening balance 1,091,369,805 2,178,970,232

Add : Addition during the year 806,218,673 1,165,799,603
1,897,588,478 3,344,769,835
Less : Capitalized as property, plant and equipment 972,133,137 2,253,400,030
925,455,341 1,091,369,805
7. Investment in shares and others
Investment in shares (Note-7.1) 132,760,809 126,998,337

Investment in Govt. savings certificates 13,750,000 13,750,000
146,510,809 140,748,337
•222
7.1 Investment in shares Market value in Taka Book Value in Taka
2015 2014 2015

Matin Spinning Mills Limited 12240281 8,170,500 13,386,583
EXIM Bank Limited 3,151,711 3,698,131 3,698,131
Bata Shoe Company (Bangladesh) Limited 2,635,400 2,344,200 264,501
Pioneer Insurance Company Limited 1,120,625 1,223,750 1,223,750
Peoples Leasing Company Limited 16,045 24,684 24,684
International Leasing & Finance Services Limited 7,644 11,760 11,760
United Commercial Bank Limited 386,382 442,936 2,602,746
Investment Corporation of Bangladesh 450,049 579,759 1,066,263
United Leasing Company Bangladesh Limited 659,526 856,132 578,923
AFC Agro Biotech Limited 24,159,983 - 22,572,487
Unique Hotel & Resorts Limited 3,036,000 - 3,785,858
First Security Bank Limited 1,602,040 - 1,846,888
Mercantile Bank Limited 1,598,580 - 2,009,897
NCC Bank Limited 1,539,538 - 1,690,635
IFAD Autos Limited 787,950 - -
Summit Purbachal Power Company Lited - 4,700,580 -
Uttara Finance Limited - 2,996,000 -
Bangladesh Building systems Limited - 1,794,000 -
Heidel Berg Cement Limited - 199,760 -
Delta Brac Housing Finance Corporation Limited - 71,600 -
The City Bank Limited - 54,500 -
City General Insurance Limited - 1,894,596 -
ICB Islami Bank Limited - 2,200,000 -
Lafarge Surma Cement Limited - 7,380,000 -
MI Cement Factory Limited - 2,888,000 -
R N Spinning Mills Limited - 3,999,680 -
Titas Gas Transmission and Distribution Co. Limited - 5,658,700 -
132,760,809 126,998,337 109,430,155

8. Inventories Amount in Taka
2015 2014
Finished goods
- Pharmaceutical 558,011,492 474,308,708
- Animal health 415,788,068 357,210,334
- Potent Product Facility 48,637,816 27,354,108
- Cepha Facility 125,938,240 103,777,147
- Penicillin Facility 41,093,198 41,848,540
Purnava Limited 53,584,682 25,669,867
Renata Oncology Limited 4,152,562 -
1,332,435,225 1,095,896,134
Work-in-process 150,466,515 215,773,935
Raw materials 686,042,035 498,592,336
Bulk materials 705,741,044 538,579,721
Consumable stores and spares 108,490,262 67,617,012
Stock in transit 263,152,675 296,434,180
3,600,221,623 2,907,366,296
Less : Provision for obsolete inventories (69,143,866) (48,327,417)
3,531,077,757 2,859,038,879
As the Company deals in large number of items which vary in units, item-wise
quantity statement of inventories could not be given.
9. Trade and other receivables

Trade receivables
Trade receivables- unsecured 1,835,799,255 1,447,024,119

Less : Allowance for doubtful receivables (58,692,092) (60,481,455)
1,777,107,163 1,386,542,664
Other receivables
Sundry receivables - unsecured but considered good 42,205,230 46,769,111

Less : Allowance for doubtful receivables (1,918,825) -
304,878,896 282,368,916
2,081,986,059 1,668,911,580
•224
10. Advances, deposits and prepayments Amount in Taka
Advances
2015 2014

Advance against expenses - travel 11,041,280 5,513,500
Advance VAT 70,450,929 73,781,203
Other advances 5,701,917 5,789,376
221,484,648 184,242,341
Deposits

Tender deposits 7,793,616 10,749,613
Dhaka Electric Supply Co. (DESCO) Limited 2,310,000 2,310,000
Radison Water garden Hotel 200,000 200,000
Bangladesh Petroleum Exploration & Production Company Limited 7,000 7,000
Gazipur Palli Bidyut Samity 10,248,000 -
Bangladesh Custom House, Airport 200,000 -
Power Development Board, Sylhet 90,000 -
Power Development Board, Comiilla 40,000 -
Dhaka Medical college & Hospital 1,540
Bangladesh Power Development Board - 52,000
Other deposits 260,500 676,902
34,964,867 27,809,726
Prepayments

2,206,565 2,122,420
258,656,080 214,174,487

11. Cash and cash equivalents Amount in Taka
2015 2014
Cash in hand 4,579,103 3,667,210
Cash at bank
One Bank Limited 2,993 6,227,690
Prime Bank Limited 1,457,246 -
United Commercial Bank Limited 1,328,707 2,349,708
Pubali Bank Limited 3,310,372 511,006
Janata Bank Limited 752,886 570,643
Islami Bank Bangladesh Limited 3,487,398 1,818,959
Dutch Bangla Bank Limited 3,138,379 10,194
324,693,884 255,334,845
Balance with City Bank Capital Resources Limited 21,404,503 31,561
350,677,490 259,033,616
12. Share capital

100,000,000 Ordinary shares of Tk.10 each 1,000,000,000 1,000,000,000

1,294,260 Ordinary shares of Tk.10 each issued for cash 12,942,600 12,942,600
1,724,490 Ordinary shares of Tk.10 each issued for consideration other than cash 17,244,900 17,244,900
49,934,764 Ordinary shares of Tk.10 each issued as bonus shares. 499,347,640 411,091,790
529,535,140 441,279,290
At 31 December 2015, the share holding positions of the Company were as follows:
Number of Face value % of total

Name of the shareholders Nationality
shares Taka shareholdings

Business Research International Corporation Inc. Panama 11,535,451 115,354,510 22%
First ICB Mutual Fund Bangladesh 674,912 6,749,120 1%
Bangladesh Fund Bangladesh 538,158 5,381,580 1%
52,953,514 529,535,140 100%
•226
2015
No. of No. of
shareholders shareholders No. of No. of % of total
Less than 500 shares 171 2,819 2,990 338,885 1%

501 to 5000 shares 59 723 782 1,174,114 2%
5,001 to 10,000 shares 14 62 76 543,819 1%
10,001 to 20,000 shares 19 48 67 919,899 2%
20,001 to 30,000 shares 2 18 20 479,602 1%
30,001 to 40,000 shares - 13 13 453,401 1%
40,001 to 50,000 shares 2 9 11 496,260 1%
50,001 to 100,000 shares - 8 8 604,191 1%
100,001 to 1,000,000 shares 1 11 12 3,838,839 7%
Over 1,000,000 shares 2 3 5 44,104,504 83%
270 3,714 3,984 52,953,514 100%

The freehold land and buildings were revalued by a firm of professional valuers in the year 1995 and the resulting
increase of value of Tk. 220,423,329 has been shown as revaluation surplus. BAS 16, Paragraph 34 requires that
a periodical revaluation is to be carried out at regular interval if the property price is volatile/significantly differs. It
has been seen that for last few years, the property prices are showing downtrend and no significant difference is
expected. However, the management contemplates to review this matter and undertakes such valuation exercise
shortly. The breakup of revaluation surplus is as follows:
Amount in Taka
2015 2014
Land 179,132,078 179,132,078

Buildings 29,504,348 30,140,233
208,636,426 209,272,311
Less: Depreciation charged during the year on revalued buildings 635,885 635,885
208,000,541 208,636,426
Less: Adjustment of deferred tax on revaluation surplus 51,480,134 51,637,515
156,520,407 156,998,911
Opening balance 332,925,427 286,084,982

361,670,776 332,925,427

15. Retained earnings Amount in Taka
2015 2014
Opening balance 7,025,778,509 5,737,513,851

Minority Interest (8,147) 637
Tax holiday reserve (28,745,349) (46,840,445)
Stock dividend issued (88,255,850) (88,255,860)
Cash dividend paid (353,023,430) (264,767,574)
8,632,869,590 7,025,778,509
16. Non-controlling interests
Share capital 6,200 6,200

Retained earnings (including tax holiday reserve) 39,042 30,895
45,242 37,095
17. Long term loan - net off current portion
Standard Chartered Bank (Note-17.1) - 380,000,000

485,914,995 1,018,410,498

157,000,003 235,900,003
328,914,992 782,510,495
Facility limit : Tk. 400,000,000.
Validity : 15 September 2014 to 15 September 2019.
Terms of Repayment : Twenty equal quarterly installments commencing from September 2014.
Nature of Security : i) Registered mortgage over industrial land in Rajendrapur where Hormone Plant-2 is situated.
Facility limit : USD 6,811,696
Terms of Repayment : Twenty equal quarterly installments commencing from February 2014.
Nature of Security : i) Registered mortgage over 376.87 decimals industrial land in Rajendrapur where Cepha,
Penicillin, and Bottle sheed are situated.
•228
18. Deferred liability - staff gratuity Amount in Taka
2015 2014
Opening balance 214,744,662 214,316,148

232,435,814 228,138,982
Less : Separated to gratuity fund (214,744,662) -
Less : Payment made during the year (472,996) (13,394,320)
17,218,156 214,744,662
Renata Limited had operated an unfunded gratuity plan till 29 December 2015 and thereafter, effective from
30 December 2015, the scheme has been converted to a funded one. Provision for gratuity is charged to profits
annually to cover obligations under the scheme on the basis of an estimate made by the management of the
Company to maintain full provision at the financial position date as per BAS-37 "Provisions, Contingent Liabilities
and Contingent Assets". However, the entire amount of gratuity of Renata Limited has been transferred to the fund
by 31 December 2015. The amount shown under gratuity head is the balance of gratuity payable to
Renata Agro Industries Limited's officials.
19. Deferred tax liability

Deferred tax liability has been recognized in accordance with the provision of "BAS-12" based on temporary
Opening balance 545,897,110 473,840,609

768,915,882 546,054,492
Reduction of deferred tax on revaluation surplus (Note-13) (157,382) (157,382)
Closing balance 768,758,500 545,897,110
Carrying Taxable /
Tax base
For the year ended 31 December 2015 balance sheet temporary
date difference

7,343,444,160 4,127,317,888 3,216,126,272
Gratuity provision (17,218,156) - (17,218,156)

223,176,154
Deferred tax expenses for the year ended 31 December 2014 223,018,772

6,167,242,484 3,652,519,313 2,514,723,171

72,056,501
Purnava Limited has no temporary differences arised due to difference in the carrying amount of the assets or
liabilities and its tax bas and no deferred tax adjustment has been considered.
20. Short term loan and overdraft

Amount in Taka
Short term bank loan 2015 2014

The Hongkong and Shanghai Banking Corporation Limited (Note-20.2) 1,159,344,971 780,484,609
Standard Chartered Bank (Note-20.4) 1,180,191,182 223,468,102
Citibank N. A. (Note-20.5) 113,049,101 229,720,338
3,089,227,958 2,722,014,532
Overdraft

Citibank N. A. (Note-20.5) 9,803,112 739,644
148,180,045 613,919,901
3,237,408,003 3,335,934,433
The terms and conditions of the facility available for

(Overdraft, Acceptance, LATR, Revolving, import and Demand loan) are as follows:
•230
Overdraft


Import finance

Security
i) First charge over all present and future inventories and trade receivable of
Renata Limited under pari-passu security sharing agreement.
iii) Registered hypothecation by way of pari passu with RJSC on entire inventory book debts and other
floating assets and plant and machinery of the Company in favor of Eastern Bank Limited.
Purpose : To import raw materials, plant & machinery and spare on sight and deferred basis.


Overdraft (O/D01)
Security
i) First charge over all present and future inventories and trade receivable of Renata Limited under
pari-passu security sharing agreement.


Import finance
Purpose : To retire sight Letter of credit documents opened for procurement API, excipient,
packing materials and finished materials.
Short term loan
Overdraft
Security
i) First charge over all present and future inventories and trade receivable of Renata Limited
under pari-passu security sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited with RJSC
on pari passu security sharing basis with the existing lenders.
Letter of credit
Purpose : To open letter of credits for import of raw materials, packing materials, capital machinery,
spares and other items required for regular course of business.

Overdraft

•232
Acceptance

Security
20.5 Citibank N. A.
Purpose : To open letter of credits for import of raw materials, packing materials, capital machinery,
Import finance

Short term loan
Purpose : To finance local purchase of active and raw materials, packing materials, capital machinery,
Overdraft


Security

Revolving LATR

Overdraft

Security
i) First charge over all present and future inventories and trade receivable of Renata Limited under
pari-passu security sharing agreement.

Security
21. Trade payables Amount in Taka

2015 2014
Local purchase 259,203,533 120,467,247

Toll manufacturing charges - Ziska 6,843,986 5,290,133
282,437,519 138,368,359
•234
22. Cost accruals Amount in Taka
2015 2014

Sales incentive 148,944,055 109,210,902
Annual bonus 104,243,919 44,028,379
Leave incentive 25,030,901 6,531,177
Legal expenses 6,951,415 4,734,904
674,030,168 430,642,575
23. Provisions and other liabilities
Provisions

Final settlement of employees 344,985 19,738,986
56,373,910 52,820,156
Other liabilities

VAT Payable 107,030,084 107,030,084
Withholding tax 5,216,130 2,228,831
PF Trustee 6,563,266 2,941,866
Royalty payable 9,511,330 7,718,791
Agent security deposit 7,620,291 8,083,514
Loan from other sources 10,000,000 10,000,000
Payable to other suppliers 8,440,816 2,359,276
Miscellaneous 954,166 -
Grant fund - GAIN 537,958 -
Advance against sales - 23,697,454
Agents commission - 4,308,102
541,629,834 453,282,288
598,003,744 506,102,444
Unresolved VAT cases claimed by the VAT authority amounting to Taka 107,030,084 for which appeals are pending with
the Hon'ble High Court Division of the Supreme Court and VAT Appellate Tribunal although during the year 2014 a liability
has been provided in the financial statements considering the probable unfavorable merit of the cases.

24. Unclaimed dividend Amount in Taka
2015 2014

17,061,417 12,963,898
Opening balance 625,285,805 371,235,887

1,147,738,756 919,627,517
Less : Tax paid during the year 392,948,800 294,341,712
754,789,956 625,285,805
26. Turnover (Net)
Renata Limited 12,851,280,646 11,086,624,270

Purnava Limited 73,925,368 47,927,209
Renata Oncology Limited 27,657 -
13,425,200,561 11,432,554,648
During the year, sale of pharmaceuticals products includes

export sales of Taka 695,417,654 equivalent to USD 8,915,872.
27. Cost of sales
Renata Limited 6,335,803,241 5,398,314,416

Purnava Limited 29,117,526 30,747,005
Renata Oncology Limited 27,657 -
6,709,671,933 5,718,007,920
•236
28. Administrative, selling and distribution expenses Amount in Taka
2015 2014
Salaries, wages and allowances 1,262,464,872 977,008,590

Contribution to provident fund 22,779,089 19,413,506
Gratuity 61,562,697 4,029,834
Fuel and power 49,712,865 39,434,151
Rent, rates and taxes 38,248,426 33,428,603
Insurance 11,301,211 10,306,873
Travelling, moving and entertainment expenses 253,718,876 264,191,785
Repairs and maintenance 43,077,805 39,500,044
Legal and professional expense 8,021,465 6,033,626
Bad debts expense 11,813,985 21,852,734
Audit fee 936,500 720,750
Directors' fee 400,000 320,000
Membership fees and subscription 7,340,969 4,460,381
Meeting and corporate expense 45,194,627 15,972,800
Advertising and sales promotion 352,046,444 309,985,851
Field expenses 660,858,197 530,940,957
Depreciation 57,815,884 51,306,502
Printing and stationery 44,488,784 40,092,146
Postage, telex, fax and telephone 35,071,762 33,006,954
Distribution freight 289,792,919 242,882,998
Lunch, snacks, tea and welfare exp. 120,326,471 92,836,535
Other overhead expense 95,161,968 102,850,243
3,472,135,816 2,840,575,863
29. Other income
Gain from sale of quoted shares 1,726,277 21,655,928

Dividend income 3,324,077 2,789,629
Gain on disposal of property, plant and equipment 3,623,503 1,285,775
Interest income 3,251,557 4,298,700
Scrap sales 3,127,266 5,796,630
15,052,680 35,826,662
30. Finance costs

Exchange loss 11,712,777 4,605,678
Bank charges 13,059,612 18,730,258
294,889,964 485,153,854

31. Basic earnings per share (EPS)
Amount in Taka
2015 2014
Opening number of shares 44,127,929

Bonus shares issued in June 2015 8,825,585
52,953,514
Last year's EPS has been adjusted as per the requirement of BAS-33 "Earnings Per Share"
32. Payments to directors and officers
The aggregate amount paid (except Directors' fees for attending board meetings) during the year to
Directors and Officers of the Company is disclosed below as required by the Securities and Exchange Rules-1987:
Directors Officers
Remuneration / salary 7,873,470 312,957,836

House rent 5,009,400 252,252,204
Bonus 3,280,613 126,842,300
Gratuity 984,184 117,955,999
23,063,814 1,021,388,254
32.1 During the year no payment has been made to any non-executive Directors for any special services rendered.
33. Dividend paid to non-resident shareholders
Dividend paid to non-resident shareholder, Business Research International Corp. Inc. during the year 2015 was
Taka 61,409,195 equivalent to USD 785,384 for their 9,595,156 shares.
34.1 There are contingent liabilities on account of unresolved disputed corporate income tax assessments involving tax
claims by the tax authority amounting to Tk. 25, 266, 780 for the assesment years 1998-99 to 2003-04;
Tk. 10,713,160 for the assessment year 2013-14 and Tk. 21,911,230 for the assessment year 2014-2015 for which
appeals are pending with the Commissioner of Taxes (Appeal) and the Hon'ble High Court Division of the Supreme Court.
•238
34.2 The Assistant Commissioner of Taxes issued a notice vide letter No. SA-162/2014-2015/82 on 01 September 2014
claiming that during the assessment year 2008-09 (income year 2007), the Company did not deduct VAT on certain
accounting heads amounting to Tk. 232,741,698 and tax file reopened accordingly under Section 93 of the Income
Tax Ordinance, 1984. Total tax amount was calculated Tk. 69,822,509 on that claimed amount by using the prevailing
corporate tax rate 30%. However, the Hon'ble High Court delivered the verdict in favour of the Company on
6 January 2016 but the National Board of Revenue has made leave to appeal to the Supreme Court Appellate Division
against the verdict.
34.3 The Value Added Tax Authority issued a notice vide letter No. 4/LTU-Mushak/Circle-5(29)Renata/631 on
28 January 2015 claimed that the Company did not pay VAT on Premix Products during 2009 to 2013 period and
VAT claimed Taka 399,242,746 for the period. A writ petition to High Court was made against the mentioned claim
and the High Court issued stay order until disposal through its verdict.
35. Claims by the Company not acknowledged as receivable
None as at 31 December 2015.
36. Commitments
On the statement of financial position date, the Company is enjoying

unfunded credit facilities from the following banks:
Amount in Taka
2015 2014
Letters of credits (Note 36.1) 899,900,721 751,005,322

Capital expenditure commitments 72,090,419 -
1,055,712,425 875,216,432
36.1 Letters of credit

Limit
The Hongkong and Shanghai Banking Corporation Ltd. 1,660,000,000 287,164,990 164,638,253
Citi Bank N.A. 768,000,000 16,186,797 195,227,087
5,448,000,000 899,900,721 751,005,322
37. Disclosure as per requirement of Schedule-XI, Part-II of the Companies Act, 1994
37.1 Employee position of the Renata Limited as per requirement of schedule XI, Part-II, Para-3
The Company engaged 5,794 (5,274 in the 2014) employees of which 3,369 is permanent employees and
1,905 (1,815 in the year 2014) is casual and temporary workers as required. All employees received total
remuneration of above Taka 36,000 per annum.

38. Payments / receipts in foreign currency
38.1 During the year, the following payments were made in foreign currency for imports, calculated on CIF basis of:
Foreign Local
currency currency
USD Taka

55,268,119 4,311,541,890
USD
Professional consultation fee 410,899
Export promotional expenses 326,094
Product registration 19,190
756,183
Export of goods on FOB 8,915,872
39. General
2) The comparative information has been disclosed in respect of 2015 for all numerical information in the financial
statements and also the narrative and descriptive information as found relevant for understanding of the
current year's financial statements.
3) To facilitate comparison, certain relevant balances pertaining to the previous year have been rearranged or
reclassified whenever considered necessary to conform to current year presentation.
40. Events after the reporting period
The Board of Directors in their meeting held on 30 April 2016 have recommended cash dividend @ 85% per share of
Taka 10 each aggregating Taka 450,104,869 and stock dividend @ 15% of Taka 10 each aggregating Taka 79,430,271
for the year ended 31 December 2015 subject to approval of the shareholders in the Annual General Meeting
scheduled to be held on 19 November 2016. The financial statements for the year ended 31 December 2015 do not
include the effects of the above cash dividend and stock dividend which will be accounted for in the period when
shareholders' right to receive the payment will be established.
There are no other material events identified after the statement of financial position date which require adjustment or
disclosure in these financial statements.
•240
as at and for the period ended June 30, 2016

Report on the Consolidated Financial statements. The procedures selected depend on the auditors’ judgment,
Statements including the assessment of the risks of material misstatement of the
consolidated financial statements, whether due to fraud or error. In
We have audited the accompanying making those risk assessments, the auditors consider internal control
consolidated financial statements of Renata relevant to the entity’s of the consolidated financial statements in order to
Limited, which comprise the consolidated design audit procedures that are appropriate in the circumstances, but
statement of financial position as at 30 June not for the purpose of expressing an opinion on the effectiveness of the
2016 and the consolidated statement of entity’s internal control. An audit also includes evaluating the
comprehensive income, consolidated appropriateness of accounting policies used and the reasonableness of
statement of changes in equity and accounting estimates made by management, as well as evaluating the
consolidated statement of cash flows for the overall presentation of the consolidated financial statements.
period from 01 January to 30 June 2016 and a
summary of significant accounting policies and We believe that the audit evidence we have obtained is sufficient and
other explanatory information. The financial appropriate to provide a basis for our audit opinion.
statements of the Company’s subsidiaries -
Renata Agro Industries Limited, Purnava Opinion
Limited and Renata Oncology Limited have
been audited by other auditors. In our opinion, the consolidated financial statements give a true and fair
view of the financial position of Renata Limited as at 30 June 2016 and
Management’s Responsibility for the of its financial performance and its cash flows for the period from 01
Consolidated Financial Statements January to 30 June 2016 in accordance with Bangladesh Financial
Reporting Standards (BFRSs).
and fair presentation of these consolidated We also report that:
financial statements in accordance with
Bangladesh Financial Reporting Standards a) we have obtained all the information and explanations which to the
(BFRSs) and for such internal control as best of our knowledge and belief were necessary for the purposes
management determines is necessary to of our audit and made due verification thereof;
enable the preparation of consolidated
financial statements that are free from material b) in our opinion, proper books of account as required by law have
misstatements, whether due to fraud or error. been kept by the Company so far as it appeared from our
c) the group’s consolidated statement of financial position and
Our responsibility is to express an opinion on consolidated statement of profit or loss and other comprehensive
these consolidated financial statements based income along with the annexed notes 1 to 39 dealt with by the report
on our audit. We conducted our audit in are in agreement with the books of account; and
accordance with Bangladesh Standards on
Auditing (BSAs). Those standards require that d) the expenditure incurred and payments made were for the purpose
we comply with ethical requirements and plan of the Company’s business.
assurance about whether the consolidated
financial statements are free from material
misstatements.

obtain audit evidence about the amounts and Dated, Dhaka Hoda Vasi Chowdhury & Co.
disclosures in the consolidated financial 24 September 2016 Chartered Accountants
•242
RENATA LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2016
Amount in Taka
ASSETS
Notes 30 June 2016 31 December 2015
Non-current assets
Property, plant and equipment - at cost/ revaluation less accumulated depreciation 5 9,549,095,438 9,258,341,054
Investment in shares and others 7 174,868,870 146,510,809
10,627,689,640 10,330,307,204
Current assets
Inventories 8 3,541,537,632 3,531,077,757
Trade and other receivables 9 2,382,112,229 2,081,986,059
6,700,405,934 6,222,397,386
TOTAL ASSETS 17,328,095,574 16,552,704,590

Share capital 12 529,535,140 529,535,140
Equity attributable to equity holders of Parent Company 10,940,740,340 9,717,036,890
Non-controlling interests 16 56,911 45,242
Total equity 10,940,797,251 9,717,082,132
Long term loans - net off current portion 17 250,095,990 328,914,992
Deferred liability - staff gratuity 18 19,728,569 17,218,156
1,240,237,963 1,114,891,648
Current liabilities
Short term bank loans and overdrafts 20 2,633,744,930 3,237,408,003
Long term loans - current portion 17 156,800,003 157,000,003
Trade payables 21 302,611,671 282,437,519
Cost accruals 22 520,332,876 674,030,168
5,147,060,360 5,720,730,810


RENATA LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
FOR THE PERIOD FROM 01 JANUARY TO 30 JUNE 2016 Amount in Taka
2016 2015
Notes January-June January-June
Turnover 26 7,686,435,003 6,334,526,030
Cost of sales 27 (3,741,861,996) (3,108,234,489)
Gross profit 3,944,573,007 3,226,291,541
Administrative, selling and distribution expenses 28 (1,746,524,620) (1,515,834,847)

Other income 29 4,995,265 9,527,023
Operating profit 2,203,043,652 1,719,983,717
Finance costs 30 (106,952,923) (128,446,451)

Profit before contribution to WPPF 2,096,090,729 1,591,537,266
Contribution to WPPF (100,378,714) (75,845,416)

Profit before tax 1,995,712,015 1,515,691,850
Tax expenses
Current tax 25 (565,541,759) (334,365,114)
Deferred tax 19 (201,734,389) (150,704,200)
(767,276,148) (485,069,314)
Net profit after tax for the period 1,228,435,867 1,030,622,536
Attributable to:
Non-controlling interests 11,669 11,659
Total profit after tax for the period 1,228,435,867 1,030,622,536

Unrealized loss on quoted shares (4,800,234) (1,647,595)
Total comprehensive income for the period 1,223,635,633 1,028,974,941
Attributable to:
Non-controlling interests 11,669 11,659
Total comprehensive income for the period 1,223,635,633 1,028,974,941

•244
RENATA LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Amount in Taka
Share Revaluation Tax holiday Available for Retained Equity for Non- Total
Particulars Parent controlling
capital surplus reserve sale reserve earnings Company interest equity
Net profit after tax for the period - - - - 2,076,479,824 2,076,479,824 8,147 2,076,487,971
Unrealized gain on quoted shares - - 4,696,576 - 4,696,576 - 4,696,576
Net profit after tax for the period - - - - 1,228,424,198 1,228,424,198 11,669 1,228,435,867
Unrealized loss on quoted shares - - - (4,800,234) - (4,800,234) - (4,800,234)
Transfer of tax holiday reserve - - (315,027,439) - 315,027,439 - - -
Balance at 30 June 2016 529,535,140 156,281,949 46,643,337 31,640,743 10,176,639,171 10,940,740,340 56,911 10,940,797,251

RENATA LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
Amount in Taka
2016 2015

Payment of VAT (1,080,250,549) (877,625,783)
Cash generated by operation 1,874,074,690 1,828,234,956
Finance costs (106,952,923) (181,192,921)

Payment of tax (366,333,193) (211,581,781)

Investment in shares (26,943,804) (34,648,952)
Bank loan (repaid)/ received (net) (668,398,514) (937,515,585)

Dividend paid (302,676) (44,717,827)

F. Cash and cash equivalents at 30 June (D+E) 474,401,334 262,557,268
•246
RENATA LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Reporting Entity
1.1 Company profile

1.2 Principal Activities

products.
1.3 Subsidiary Companies
1.3.1 Renata Agro Industries Limited

Renata Agro Industries Limited, a subsidiary Company of Renata Limited, was incorporated on 7 September 1997 as a
private limited Company under the Companies Act 1994 with authorized share capital of Tk. 150,000,000 divided into
1,500,000 ordinary shares of Tk. 100 each. The Company commenced its commercial operation from October 1998. The
principal activities of the Company comprise of poultry breeding and hatching and selling of various agro based products.
1.3.2 Purnava Limited

Purnava Limited, a subsidiary Company of Renata Limited, was incorporated on 17 August 2004 as a private limited
Company under the Companies Act 1994 with authorized share capital of Tk. 200,000,000 divided into 2,000,000 ordinary
shares of Tk. 100 each. The Company commenced its commercial operation in 2009. The principal activities of the Company
are manufacturing, marketing and distribution of all kinds of consumer goods, consumer durables, food items, edible oils etc.
and to engage in the business as traders, importers, exporters, commission agents of all kinds of goods and services
including pharmaceutical products.
1.3.3 Renata Oncology Limited

Renata Oncology Limited, a subsidiary Company of Renata Limited, was incorporated on 12 August 2012 as a private limited
Company under the Companies Act 1994 with authorized share capital of Tk. 1,000,000,000 divided into 100,000,000
ordinary shares of Tk. 10 each. The principal activities of the Company are manufacturing, marketing and distribution of drugs
and medicines, allopathic and indigenous and particularly produce and prepare biological and non-biological drugs,
injectables of all kinds of tablets of all sorts, serum, vaccines syrup both medicated and non-medicated.
2. Significant Accounting Policies
2.1 Basis of accounting

The financial statements have been prepared following Generally Accepted Accounting Principles (GAAP) under historical
cost convention and after due compliance with the Bangladesh Financial Reporting Standards (BFRS) and Bangladesh
Accounting Standards (BAS), the Companies Act 1994, the Securities and Exchange Rules 1987 and other applicable laws
and regulations. More specifically, the consolidated financial statements of the Company have been prepared in accordance
with the provisions of BFRS-10 "Consolidated Financial Statements".
2.2 Principles of consolidation

The financial statements of all the subsidiaries of the Company have been fully consolidated as the Company directly controls
more than 50% voting shares of these entities. The Company has made following investments in its subsidiaries:
Amount in Taka
Name on subsidiaries
Purnava Limited 2,499,900 2,499,900
Total 143,069,376 143,069,376

2.3 Scope of consolidation
The name of subsidiaries and proportion of ownership interest are as follows:
Name on subsidiaries % of ownership interest

Renata Agro Industries Limited 99.988%
Purnava Limited 99.996%
Renata Oncology Limited 99.999%


- Purchase price, including all non recoverable duties and taxes but net off discounts; and
- Costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating
in the manner intended by the management.
2.4.2 Subsequent Costs

- Repairs and maintenance expenditure is recognized as expenditure when incurred; and
2.4.3 Depreciation
and no depreciation is charged for the month of disposal. The rates of depreciation and category of property, plant and
equipment are as follows:
The list of property, plant & equipment and related depreciation rates are given below:

Asset Type
30 June, 2016 31 December, 015
Building 1.54-12.5 1.54-12.5
Automobiles 20-25 20-25
Furniture & fixture 5-20 5-20

An item of property, plant and equipment is removed from the statement of financial position when it is disposed off or when
no future economic benefits are expected from its use or disposal. The gain or loss on the disposal of an item of property, plant
and equipment is included in the statement of comprehensive income of the period in which the assets are disposed off.
2.4.5 Impairment
The carrying amounts of its assets are reviewed at each balance sheet date to determine whether there is any indication of
impairment loss. If any such indication exists, recoverable amount is estimated in order to determine the extent of the

BAS 16, Paragraph 34 requires that a periodical revaluation is to be carried out at regular interval if the property price is
volatile/ significantly differs. It has been seen that for last few years, the property prices are showing downtrend and no
significant difference is expected. However, the management contemplates to review this matter and undertakes such
valuation exercise in the future.
•248
Property, plant and equipment under construction/ acquisition have been accounted for as capital work-in-progress until
construction/ acquisition is completed and measured at cost.

investments are measured at fair value and any changes in the fair value are recognized in the statement of comprehensive
income under the component of other comprehensive income for the period in which it arises.


2.9 Trade payables

2.10 Interest-bearing borrowings

Interest-bearing bank loans and overdrafts are recorded at the amount of proceeds received. Borrowing costs directly
attributable to the acquisition and construction of plant and equipment are capitalized as part of the cost of those assets, until
such time as the assets are ready for their intended use in accordance with BAS-23. All other borrowing costs are charged
to the statement of comprehensive income as an expense in the period in which they are incurred.
2.11 Inventories
Cost of active materials, raw materials and packing materials is valued by using FIFO formula.
Cost of work-in-progress and finished stocks are arrived at by using FIFO cost formula including allocation of manufacturing
overheads related to bringing the inventories to their present condition. The Company uses standard cost method for
measurement of cost of finished goods.

Provisions are recognized in the financial statements in line with the “BAS-37” when-
- the company has a legal or constructive obligation as a result of past event;

The Company has created a workers’ profit participation and welfare fund in compliance with “The Bangladesh Labour Act,
2006” (as amended in 2013) and 5% of profit before charging such expenses is transferred to this fund.

2.14.1 Current Tax


2.14.2 Deferred Tax
taxable for the events or transactions recognized in the statement of comprehensive income. A temporary difference is the
difference between the carrying amount of assets and liabilities and its tax base amount in the statement of financial position.
Deferred tax asset or liability is the amount of income tax recoverable or payable in future period(s) recognized in the current
period. The deferred tax asset/ income or liability/ expense do not create a legal liability/ recoverability to and from the income
tax authority. Deferred tax also arises due to revaluation of property, plant and equipment. The resulting impact of deferred
tax assets/ liabilities on revaluation surplus is included in the statement of changes in equity.
2.15 Employees benefit obligation


2.15.3 Group insurance

2.16 Revenue
Revenue is recognized upon invoicing the customers for goods sold and delivered net off returns and allowances and trade
discounts.
the Company.

Foreign currency transactions are accounted at exchange rate prevailing on the date of transactions. Monetary assets and
liability denominated in foreign currencies at reporting date are translated at rates ruling at the statement of financial position
date. All exchange differences are charged/ credited to the statement of comprehensive income.

The Company presents basic earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated as the profit or
loss attributable to the ordinary shareholders of the Company divided by the weighted average number of ordinary shares
outstanding during the period/ year.
2.19 Financial Risk Management

performance.
best practices.
•250
2.19.1 Credit risk

price.
damage to the Company's reputation. Typically, management ensures that it has sufficient cash and cash equivalent to meet
expected operational expenses, including the servicing of financial obligation through preparation of the cash forecast,
prepared based on time line of payment of the financial obligation and accordingly arrange for sufficient liquidity / fund to
make the expected payment within due date.
2.19.3 Market risk

a. Currency risk
The Company is exposed to currency risk on certain revenues and purchase such as revenue from foreign customers and
import of raw material, machineries and equipment. The majorities of the Company’s foreign currency transactions are
denominated in USD and relate to procurement of raw material, machineries and equipment from abroad.

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate because of changes
in market interest rates. Renata Limited takes on exposure to the effects of fluctuations in the prevailing levels of market
interest rates on both its fair value and cash flow risks. Interest margins may increase as a result of such changes but may
reduce losses in the event that unexpected movements arise.

position and statement of comprehensive income.
3.2 Basis of Consolidation

The financial statements of the Company and its subsidiaries, as mentioned in note-1.3, have been consolidated in
accordance with Bangladesh Financial Reporting Standard BFRS-10 “Consolidated Financial Statements”. Figures used in
the consolidated financial statements are based on the audited financial statements of Renata Agro Industries Limited,
Purnava Limited and Renata Oncology Limited audited by other auditors. Intra-group balances, and any unrealized income
and expenses arising from intra-group transactions have been eliminated while preparing the consolidated financial
statements. Unrealized gains arising from transactions with equity account of investees have been eliminated against the
investment to the extent of the parent Company’s interest in the investee. Unrealized losses were eliminated in the same way
as unrealized gains, but only to the extent that there was no evidence of impairment.
The consolidated financial statements are prepared to a common reporting period ended on 30 June 2016.
3.3 Reporting Framework and Compliance thereof

and Exchange Rules 1987, the Listing Regulations of Dhaka Stock Exchange (DSE) and other relevant local laws as
International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs).

financial information presented in Taka has been rounded off to the nearest integer.

The financial period of the Company covers six months from 01 January to 30 June 2016.
3.6 Comparative Information and Rearrangement thereof


The preparation of financial statements in conformity with Bangladesh Accounting Standards requires management to make
judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses, and disclosure requirements for contingent assets and liabilities during and at the date of
In particular, significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the
most significant effect on the amounts recognized in the financial statements include depreciation, inventory valuation,
accrued expenses and other payables.
3.8 Going concern

The Company has adequate resources to continue in operation for foreseeable future. For this reason the directors continue

3.10 Events after the Reporting Period

In compliance with the requirements of BAS-10 “Events after the Reporting Period” post statement of financial position events
that provide additional information about the Company’s position at the statement of financial position date are reflected in
the financial statements and events after the statement of financial position date that are not adjusting events are disclosed
in the notes when material.
4. Directors’ responsibility statement

•252
5. Consolidated property, plant and equipment - at cost/ revaluation less accumulated depreciation Amount in Taka
Cost/Revaluation Depreciation
Balance Disposal/ Balance Balance Disposal/ Balance Written

Particulars as at Additions adjustment as at Rate as at Charged adjustment as at down value as
1 January during during 30 June % 1 January for during 30 June at 30 June
2016 the period the period 2016 2016 the period the period 2016 2016
Freehold land
At cost 1,109,900,301 21,241,162 - 1,131,141,463 - - - - 1,131,141,463
On revaluation 179,132,078 - - 179,132,078 - - - - 179,132,078
1,289,032,379 21,241,162 - 1,310,273,541 - - - - 1,310,273,541
Buildings
At cost 3,239,075,317 124,649,612 - 3,363,724,929 1.54-5 413,501,815 54,564,055 - 468,065,870 2,895,659,059
On revaluation 41,291,251 - - 41,291,251 1.54-5 12,422,788 317,943 - 12,740,731 28,550,520
3,280,366,568 124,649,612 - 3,405,016,180 425,924,603 54,881,999 - 480,806,602 2,924,209,578
Plant and machinery 6,558,219,067 358,468,271 2,192,971 6,914,494,367 5-20 1,749,093,089 217,445,985 1,216,758 1,965,322,316 4,949,172,051
Automobiles 250,955,022 69,509,599 - 320,464,621 20-25 177,602,879 19,398,895 - 197,001,774 123,462,847
Office equipment 278,402,234 20,841,785 - 299,244,019 10-12.50 134,896,336 13,280,868 - 148,177,204 151,066,814
Furniture and fixtures 132,236,398 8,439,318 90,800 140,584,916 5-20 43,353,707 6,358,152 37,550 49,674,309 90,910,607
Total 30 June 2016 11,789,211,668 603,149,747 2,283,771 12,390,077,644 2,530,870,614 311,365,899 1,254,308 2,840,982,205 9,549,095,438
Total 31 Dec. 2015 10,567,523,884 1,229,991,784 8,304,000 11,789,211,668 1,983,687,171 555,480,946 8,297,503 2,530,870,614 9,258,341,054
Amount in Taka
6. Capital work in-progress 30 June 31 December

2016 2015
Opening balance 925,455,341 1,091,369,805

1,359,326,577 1,897,588,478
Capitalized as property, plant and equipment (455,601,245) (972,133,137)
903,725,332 925,455,341
7. Investment in shares and others
Investment in shares (Note-7.1) 149,974,150 132,760,809

Investment in Govt. savings certificates 13,750,000 13,750,000
Investment in Govt. bonds 11,144,720 -
174,868,870 146,510,809

7.1 Investment in shares Market value in Taka Book Value in Taka
30 June 31 December 30 June

2016 2015 2016

EXIM Bank Limited 1,424 3,151,711 1,531
Bata Shoe Company (Bangladesh) Limited 2,410,800 2,635,400 2,635,400
Pioneer Insurance Company Limited 1,160,844 1,120,625 1,120,625
People's Leasing and Finance Services Limited 9,761 16,045 16,045
International Leasing and Finance Services Limited 6,791 7,644 7,644
Investment Corporation of Bangladesh 471,520 450,049 450,049
United Leasing Company Bangladesh Limited 610,365 659,526 659,526
AFC Agro Biotech Limited 21,406,186 24,159,983 24,159,983
Unique Hotel & Resorts Limited 2,802,000 3,036,000 3,036,000
IFAD Autos Limited 718,719 787,950 787,950
Summit Power Limited 3,593,400 - 4,121,703
IDLC Finance Limited 2,935,000 - 3,198,917
Trust Bank Limited 1,998,000 - 2,379,480
The City Bank Limited 924,000 - 838,792
First Security Bank Limited - 1,602,040 -
Mercantile Bank Limited - 1,598,580 -
NCC Bank Limited - 1,539,538 -
149,974,150 132,760,809 154,774,385
•254
8. Inventories
Amount in Taka
30 June 31 December
2016 2015
Finished goods
- Pharmaceutical 485,097,557 558,011,492
- Animal health 420,866,583 415,788,068
- Cepha facility 122,809,355 125,938,240
Purnava Limited 55,495,761 53,584,682
1,262,225,350 1,332,435,225
Work-in-process 172,750,725 150,466,515
Raw materials 495,420,361 686,042,035
Bulk materials 767,507,995 705,741,044
Consumable stores and spares 151,694,133 108,490,262
Stock in transit 431,549,995 263,152,675
3,631,950,373 3,600,221,623
Provision for obsolete inventories (90,412,741) (69,143,866)
3,541,537,632 3,531,077,757
As the Company deals in large number of items which vary in units, item-wise quantity statement of inventories could
not be given.
9. Trade and other receivables

30 June 31 December
Trade receivables 2016 2015
Trade receivables- unsecured 2,114,032,136 1,835,799,255

2,054,420,475 1,777,107,163
Other receivables
Sundry receivables - unsecured but considered good 82,888,910 42,205,230

327,691,754 304,878,896
2,382,112,229 2,081,986,059

Amount in Taka
10. Advances, deposits and prepayments
30 June 31 December
Advances 2016 2015

Advance against expenses - travel 38,398,492 11,041,280
Advance VAT 51,272,903 70,450,929
Other advances 13,762,000 5,701,917
237,956,226 221,484,648
Deposits

Tender deposits 8,904,110 7,793,616
Dhaka Electric Supply Co. (DESCO) Limited 2,310,000 2,310,000
Radison Water garden Hotel 200,000 200,000
Bangladesh Petroleum Exploration & Production Company Limited 7,000 7,000
Gazipur Palli Bidyut Samity 10,248,000 10,248,000
Bangladesh Custom House, Airport 200,000 200,000
Power Development Board, Sylhet 90,000 90,000
Power Development Board, Comiilla 40,000 40,000
Dhaka Medical college & Hospital 1,540 1,540
Other deposits 260,500 260,500
36,429,611 34,964,867
Prepayments

Advertisement 18,826,502 -
27,968,902 2,206,565
302,354,739 258,656,080
•256
Amount in Taka
11. Cash and cash equivalents
30 June 31 December
2016 2015
Cash in hand 5,152,179 4,579,103
Cash at bank
One Bank Limited 2,993 2,993
United Commercial Bank Limited 909,075 1,328,707
Pubali Bank Limited 2,781,942 3,310,372
Janata Bank Limited 483,310 752,886
Islami Bank Bangladesh Limited 1,798,287 3,487,398
Dutch Bangla Bank Limited 1,870,894 3,138,379
469,209,272 324,693,884
Balance with City Bank Capital Resources Limited 31,434 21,404,503
Balance with ICB Securities Trading Company Limited 8,449 -
39,882 21,404,503
474,401,334 350,677,490
12. Share capital
Authorized share capital 1,000,000,000 1,000,000,000

100,000,000 Ordinary shares of Tk.10 each
Issued, subscribed and paid up capital 12,942,600 12,942,600

49,934,764 ordinary shares of Tk.10 each issued as bonus shares 529,535,140 529,535,140
At 30 June 2016, the share holding positions of the Company were as follows:
Number of Face value % of total

Name of the shareholders Nationality
shares Taka shareholdings

52,953,514 529,535,140 100%

30 June 2016
No. of No. of
shareholders shareholders No. of No. of % of total
Less than 500 shares 146 3,214 3,360 388,205 1%

501 to 5000 shares 58 728 786 1,222,847 2%
5,001 to 10,000 shares 12 66 78 561,496 1%
10,001 to 20,000 shares 19 48 67 920,602 2%
20,001 to 30,000 shares 2 20 22 532,689 1%
30,001 to 40,000 shares - 15 15 518,143 1%
40,001 to 50,000 shares 2 11 13 587,889 1%
50,001 to 100,000 shares - 10 10 717,809 1%
100,001 to 1,000,000 shares 1 13 14 3,399,330 6%
Over 1,000,000 shares 2 3 5 44,104,504 83%
242 4,128 4,370 52,953,514 100%

The freehold land and buildings were revalued by a firm of professional valuer in the year 1995 and the resulting
increase of value of Tk. 220,423,329 has been shown as revaluation surplus. BAS 16, Paragraph 34 requires that
a periodical revaluation is to be carried out at regular interval if the property price is volatile/significantly differs. It
has been seen that for last few years, the property prices are showing downtrend and no significant difference is
expected. However, the management contemplates to review this matter and undertakes such valuation exercise
in the future. The breakup of revaluation surplus is as follows:
30 June 31 December
2016 2015
Land 179,132,078 179,132,078

Buildings 28,868,463 29,504,348
208,000,541 208,636,426
Depreciation charged during the period/ year on revalued buildings (317,943) (635,885)
207,682,598 208,000,541
Adjustment of deferred tax on revaluation surplus (51,400,648) (51,480,134)
156,281,949 156,520,407
Opening balance 361,670,776 332,925,427

Provision made during the period - 28,745,349
361,670,776 361,670,776
Transferred to retained earnings (315,027,439) -
46,643,337 361,670,776
•258
Amount in Taka
15. Retained earnings
30 June 31 December
2016 2015
Opening balance 8,632,869,590 7,025,778,509

Minority interest (11,669) (8,147)
Transfer from tax holiday reserve 315,027,439 (28,745,349)
Stock dividend issued - (88,255,850)
Cash dividend paid - (353,023,430)
10,176,639,171 8,632,869,590
16. Non-controlling interests
Share capital 6,200 6,200

Retained earnings (including tax holiday reserve) 50,711 39,042
56,911 45,242
17. Long term loan - net off current portion
406,895,993 485,914,995

156,800,003 157,000,003
250,095,990 328,914,992
Facility limit : USD 6,811,696
Nature of security : i) Registered mortgage over 376.87 decimals industrial land in Rajendrapur where Cepha,
Penicillin, and Bottle shed are situated.

Amount in Taka
18. Deferred liability - staff gratuity
30 June 31 December
2016 2015
Opening balance 17,218,156 214,744,662

Provision made during the period 2,700,000 17,691,152
19,918,156 232,435,814
Separated to gratuity fund - (214,744,662)
Payment made during the period (189,587) (472,996)
19,728,569 17,218,156
Renata Limited had operated an unfunded gratuity plan till 29 December 2015 and thereafter, effective from 30
December 2015, the scheme has been converted to a funded one. Provision for gratuity is charged to profits annually
to cover obligations under the scheme on the basis of an estimate made by the management of the Company to
maintain full provision at the financial position date as per BAS-37 "Provisions, Contingent Liabilities and Contingent
Assets". However, the entire amount of gratuity of Renata Limited has been transferred to the fund by 31 December
2015. The amount shown under gratuity head is the balance of gratuity payable to Renata Agro Industries Limited's
officials.
19. Deferred tax liability

Deferred tax liability has been recognized in accordance with the provision of BAS-12 "Income Taxes" based on
temporary differences arising due to difference in the carrying amount of the assets or liabilities and its tax base.
Opening balance 768,758,500 545,897,110

Addition during the period (expenses) 201,734,389 223,018,772
970,492,889 768,915,882
Adjustment of deferred tax on revaluation surplus (Note-13) (79,486) (157,382)
970,413,404 768,758,500
Carrying Taxable /
For the period ended 30 June 2016 amount on (deductible)
date Tax base difference
Taka Taka Taka

8,239,405,514 4,201,405,803 4,037,999,711

Deferred tax liability as on 30 June 2016 970,413,404
201,654,904
Deferred tax expense for the period ended 30 June 2016 201,734,389
•260
Carrying Taxable /
For the year ended 31 December 2015 amount on (deductible)
date Tax base difference
Taka Taka Taka

7,343,444,160 4,127,317,888 3,216,126,272

222,861,390
Purnava Limited has no temporary differences arised due to difference in the carrying amount of the assets or liabilities
and its tax base and no deferred tax adjustment has been considered.
Amount in Taka
20. Short term loan and overdraft
30 June 31 December
2016 2015
Short term bank loans

The Hongkong and Shanghai Banking Corporation Limited (Note-20.2) 2,505,543 1,159,344,971
Standard Chartered Bank (Note-20.4) 1,363,613,386 1,180,191,182
Citibank N. A. (Note-20.5) 372,441,895 113,049,101
2,195,287,335 3,089,227,958
Overdrafts

Citibank N. A. (Note-20.5) 64,099,901 9,803,112
438,457,595 148,180,045
2,633,744,930 3,237,408,003
The terms and conditions of the facility available for (Overdraft, Acceptance, LATR, Revolving, Import and Demand
loan) are as follows:

Overdraft


Import finance

Security :
iii) Registered hypothecation by way of pari passu with RJSC on entire inventory book debts and
other floating assets and plant and machinery of the Company in favor of Eastern Bank Limited.

Purpose : To import raw materials, plant and machinery and spare on sight and deferred basis.


Overdraft (O/D01)
Security
sharing agreement.
•262

Import finance
Short term loan

Overdraft
Security
sharing agreement.
ii) First charge over all present and future plant and machinery of Renata Limited with RJSC on pari passu security
sharing basis with the existing lenders.
Letter of credit

Overdraft
Acceptance
Security
sharing agreement.

21.0 Citibank N. A.
Import finance
Short term loan

Overdraft

Security
sharing agreement.

Revolving LATR
Overdraft

Security
sharing agreement.
•264

Security
sharing agreement.
Amount in Taka
21. Trade payables
30 June 31 December
2016 2015
Local purchase 264,661,163 259,203,533

Toll manufacturing charges - Ziska 7,094,416 6,843,986
302,611,671 282,437,519
22. Cost accruals

Sales incentive 47,485,630 148,944,055
Annual bonus 101,381,910 104,243,919
Leave incentive 40,426,113 25,030,901
Legal expenses 2,077,514 6,951,415
520,332,876 674,030,168

Amount in Taka
23. Provisions and other liabilities
30 June 31 December
Provisions 2016 2015
Final settlement of employees - 344,985
70,075,697 56,373,910
Other liabilities
VAT Payable 107,030,084 107,030,084
Withholding tax 6,551,020 5,216,130
Provident fund trustee 2,853,977 6,563,266
Royalty payable 10,395,776 9,511,330
Agent security deposit 7,377,421 7,620,291
Payable to other suppliers 17,341,681 8,440,816
Grant fund - GAIN 5,872,319 537,958
Advance against sales 38,305,760 -
Gratuity 16,244,056 -
Lease hire vehicle 2,598,017 -
Loan from other sources - 10,000,000
486,361,094 541,629,834
556,436,791 598,003,744
Unresolved VAT cases claimed by the VAT authority amounting to Tk. 107,030,084 for which appeals are pending with
the Hon'ble High Court Division of the Supreme Court and VAT Appellate Tribunal although during the year a liability
has been provided in the financial statements considering the probable unfavorable merit of the cases.
24. Unclaimed dividend

16,758,741 17,061,417
Opening balance 754,789,956 625,285,805

Provision made during the period 565,541,759 522,452,951
1,320,331,715 1,147,738,756
Tax paid during the period (359,956,367) (392,948,800)
960,375,348 754,789,956
2016 2015
26. Turnover (Net)
Renata Limited 7,276,713,754 5,998,220,981

Purnava Limited 62,180,881 28,395,236
7,686,435,003 6,334,526,030
During the period, sale of pharmaceuticals products includes export sales of Tk. 159,449,774equivalent to US$ 2,032,428.
•266
Amount in Taka
2016 2015
27. Cost of sales (January-June) (January-June)
Renata Limited 3,538,517,386 2,907,342,202
Purnava Limited 11,653,255 20,745,371
3,741,861,996 3,108,234,489

Contribution to provident fund 16,813,461 11,420,535
Gratuity 39,199,294 30,356,008
Fuel and power 26,393,666 23,226,498
Rent, rates and taxes 13,033,653 20,912,442
Insurance 2,630,486 3,958,517
Travelling, moving and entertainment expenses 159,737,156 147,597,681
Repairs and maintenance 18,842,880 29,238,354
Legal and professional expenses 623,327 4,365,003
Bad debts expenses 919,570 4,000,000
Audit fee 644,000 896,250
Directors' fee 210,000 180,000
Membership fees and subscription 21,417,215 5,556,601
Meeting and corporate expenses 37,171,951 31,086,630
Advertising and sales promotion 205,302,029 176,083,392
Field expenses 318,242,646 201,239,830
Depreciation 37,136,683 26,037,944
Printing and stationery 19,258,113 18,413,481
Postage, telex, fax and telephone 15,458,431 18,237,375
Distribution freight 150,789,252 143,559,185
Lunch, snacks, tea and welfare expenses 75,278,313 65,141,443
Other overhead expenses 92,416,285 80,688,344
1,746,524,620 1,515,834,847
29. Other income
Gain from sale of quoted shares 561,576 -

Dividend income 1,423,545 618,069
Interest income 1,088,901 2,003,205
Scrap sales 1,521,243 1,496,474
Gain on disposal of property, plant and equipment 400,000 -
Exchange gain - 5,409,275
4,995,265 9,527,023
30. Finance costs

Exchange loss 3,140,847 -
Bank charges 6,719,706 7,073,132
106,952,923 128,446,451

Amount in Taka
31. Basic earnings per share (EPS)
The computation of EPS is given below: 2016 2015
2016 2015
Opening number of shares 52,953,514 44,127,929

Bonus shares issued in June 2015 - 8,825,585
52,953,514 52,953,514
32. Payments to directors and officers

The aggregate amount paid (except Directors' fees for attending board meetings) during the year to Directors and
Officers of the Company is disclosed below as required by the Securities and Exchange Rules-1987:
Directors Officers
Remuneration / salary 4,487,878 185,692,566

House rent 2,855,358 154,164,401
Bonus 1,495,960 69,558,192
Gratuity 560,985 68,732,770
13,356,035 612,627,406
32.1 During the year no payment has been made to any non-executive Directors for any special services rendered.
33. Dividend paid to non-resident shareholders
No dividend payments were made to non-resident shareholders during the period from 01 January to 30 June 2016.
•268
34.1 There are contingent liabilities on account of unresolved disputed corporate income tax assessments involving
tax claims by the tax authority amounting to Tk. 8,381,193 for the assessment year 1998-99 to 2000-01;
Tk. 11,888,503 for the assessment year 2013-14 and Tk. 14,478,424 for the assessment year 2014-2015 for
which appeals are pending with the Commissioner of Taxes (Appeal) and the Hon'ble High Court Division of the
Supreme Court.
34.2 The Assistant Commissioner of Taxes issued a notice vide letter No. SA-162/2014-2015/82 on 01 September 2014
claiming that during the assessment year 2008-09 (income year 2007), the Company did not deduct VAT on certain
accounting heads amounting to Tk. 232,741,698 and tax file reopened accordingly under Section 93 of the Income
Tax Ordinance, 1984. Total tax amount was calculated Tk. 69,822,509 on that claimed amount by using the prevailing
corporate tax rate 30%. However, the Hon'ble High Court delivered the verdict in favour of the Company on
6 January 2016 but the National Board of Revenue has made leave to appeal to the Supreme Court
Appellate Division against the verdict.
34.3 The Value Added Tax Authority issued a notice vide letter No. 4/LTU-Mushak/Circle-5(29)Renata/631 on
28 January 2015 claimed that the Company did not pay VAT on Premix Products during 2009 to 2013 period and
VAT claimed Taka 399,242,746 for the period. A writ petition to High Court was made against the mentioned claim
and the High Court issued stay order until disposal through its verdict.
35. Claims by the Company not acknowledged as receivable
None as at 30 June 2016.
36. Commitments
Amount in Taka
30 June 31 December
2016 2015
Letters of credit (Note-36.1) 834,151,922 899,900,721

Capital expenditure commitments 23,230,746 72,090,419
944,911,157 1,055,712,425
36.1 Letters of credit

Limits
The Hongkong and Shanghai Banking Corporation Ltd. 1,660,000,000 94,272,298 287,164,990
Citi Bank N.A. 768,000,000 58,483,995 16,186,797
5,598,000,000 834,151,922 899,900,721

37. Disclosure as per requirement of Schedule-XI, Part-II of the Companies Act, 1994
37.1 Employee position of the Renata Limited as per requirement of schedule XI, Part-II, Para-3
The Company engaged 6,322 (5,794 in the year 2015) employees of which 4,249 (3,369 in the year 2015) is permanent
employees and 2,073 (1,905 in the year 2015) is casual and temporary workers as required. All employees received total
remuneration of above Taka 36,000 per annum.
38. Payments / receipts in foreign currency
38.1 During the period, the following payments were made in foreign currency for imports,
calculated on CIF basis of:
Foreign Local
currency currency
USD Taka

27,805,312 2,179,936,434
USD
Professional consultation fee 155,449
Export promotional expenses 464,765
Product registration 35,207
655,421
Export of goods on FOB 2,032,428
39. General
2) The comparative information has been disclosed in respect of the period from 01 January to 30 June 2016
for all numerical information in the financial statements and also the narrative and descriptive information as
found relevant for understanding of the current year's financial statements.
3) To facilitate comparison, certain relevant balances pertaining to the previous period have been rearranged or
reclassified whenever considered necessary to conform to current period's presentation.
•270
CORPORATE HEADQUARTERS
Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216, Bangladesh
PABX: (880 -2) 800 1450-54, Fax: (880 -2) 800 1446
e-mail: renata@renata-ltd.com, Website: www.renata-ltd.com
MANUFACTURING SITES
Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216, Bangladesh, PABX: (880 -2) 801 1012-13
Noyapara, Bhawal Mirzapur, Rajendrapur, Gazipur, Bangladesh, Tel: 06825-55148
Kashor, P.O.: Seed Store, P.S.: Bhaluka, Mymensingh, Bangladesh.
DISTRIBUTION CENTRES
Burigonga Depot Chittagong Depot Khulna Depot

Teghoria (Nuton Raster Moor), Prashanti Tower-3, 27, Sir Iqbal Road,
South Keranigonj, Dhaka - 1311 Prashanti R/A Road, Colonel Hat, Khulna - 9100
Mobile: 01847028891 Pahartali, Chittagong Phone & Fax: 041-720154
e-mail: dhaka@renata-ltd.com Phone- 031-751255 Mobile: 01817049382
Fax: 031-751256 e-mail: khulna@renata-ltd.com
Gazipur Depot Mobile: 01817049449
E/214, Joorpukurpar e-mail: chittagong@renata-ltd.com Jessore Depot
Joydebpur, Gazipur-1700 Sheikh Hati, DIG (Prison)
Tel: 02-9263297, Mobile: 01817045729 Chokoria Depot Jail Road, Jessore -7400
e-mail: gazipur@renata-ltd.com Hospital Road, Chokoria - 4740 Phone & Fax: 0421-60851
Phone & Fax: 034-2256251 Mobile: 01817049381
Bhairab Depot Mobile: 01817041015 e-mail: jessore@renata-ltd.com
808, Bhairabpur, e-mail: chakaria@renata-ltd.com
Bhairab, Kishoregonj -2350 Rajshahi Depot
Phone & Fax: 02-9470265 Comilla Depot C-212, Laxmipur,
Mobile: 01814651002 Bscic Road, Ranir Bazar, Greater Road,
e-mail: bhairab@renata-ltd.com Comilla - 3500 Rajshahi - 6000
Phone & Fax: 081-76989 Phone & Fax: 0721-772893
Turag Depot Mobile: 01817049452 Mobile: 01817049459
House # 39, Road #06 e-mail: comilla@renata-ltd.com e-mail : rajshahi@renata-ltd.com
Block # C, Turag Thana Road
Dhour, Turag, Dhaka-1230 Kirtonkhola Depot Bogra Depot
Phone: 02-8981813 Amtola Moor, Band Road, Jaleswaritola, Bogra - 5800
Fax: 02-8981898 Barisal - 8200
Phone & Fax: 051-66379
Mobile: 01833316984 Phone & Fax: 0431-71249
Mobile: 01817049376
e-mail: turag@renata-ltd.com Mobile: 01817049375
e-mail: bogra@renata-ltd.com
e-mail: barisal@renata-ltd.com
Tangail Depot
Rangpur Depot
Holding No.1135, Biswas Betka, Feni Depot
Faizon Vila, Road#1,
Atpukurpar, Dhaka Road, Dhaka Chittagong Highway,
House#3, Karanipara,
Tangail Sadar, Tangail-1900 Debipur, Fatepur, Shorshodi,
Rangpur -5400
Fax: 0921-61158 Feni-3902
Phone & Fax: 0521-62822
Mobile: 01847-186614 Mobile: 01817049531
Mobile: 01817049072
e-mail: tangail@renata-ltd.com e-mail: feni@renata-ltd.com
e-mail: rangpur@renata-ltd.com
Brahmaputra Depot Faridpur Depot
By-pass Mour, Dhaka Road, Dinajpur Depot
Utrile Lodge,
Digarkanda, Mymensingh Masjid Bari Sarak, Amir Lodge, Block #08,
Mobile:01817049456 Niltuly, Faridpur- 7800 House # 36, Upshohor
e-mail: mymensingh@renata-ltd.com Phone & Fax: 0631-62174 Housing More, Dinajpur -5200
Mobile: 01817049370 Phone & Fax: 0531-66164
e-mail: faridpur@renata-ltd.com Mobile: 01833-316987
Surma Depot
e-mail: dinajpur@renata-ltd.com
Sylhet Sunamgonj By-pass Road,
Lotipur, Dakshin Surma, Sylhet - 3100
Mobile: 01817049367
e-mail: sylhet@renata-ltd.com

RENATA LIMITED Revenue
Stamp
of
PROXY FORM Taka 20.00
I/We, the undersigned, being a member of the above named Company hereby appoint
Mr./Ms.
Of (Address)
as my/our proxy to vote and act for me/us and on my/our behalf, at the 43rd Annual General
Meeting of the Company, to be held at the Lakeshore Hotel, La Vita Hall, Road-41, House-46,
Gulshan-2, Dhaka-1212 on Saturday, November 19, 2016 at 11.00 a.m. and at any adjournment
thereof.
Specimen Signature (s) of the Shareholder (s) Date:
Name in Block Letters
Address
Folio/BO No.
Date:
Signature of the Proxy
RENATA LIMITED
Shareholders’ Attendance Slip

I/We hereby record my/our attendance at the 43rd Annual General Meeting
being held on Saturday, November 19, 2016 at the Lakeshore Hotel, La Vita Hall,
Road-41, House-46, Gulshan-2, Dhaka-1212 at 11.00 a.m.
Name of Shareholder(s)...............................................................................................................
Register Folio/BO No. .................................................................................................................
holding of ........................ Ordinary Shares of Renata Limited.
Signature (s) of Shareholder(s)

Note :
1. Please note that AGM can only be attended by the honourable shareholder or
properly constituted proxy. Therefore, any friend or children accompanying with
honourable shareholder or proxy cannot be allowed into the meeting.
2. Please bring this slip with you and present at the reception desk.
3. No Gift/Gift Coupon/Food Box shall be distributed at the 43rd AGM in Compliance with the Bangladesh Securities
and Exchange Commission’s Circular No. SEC/CMRRCD/2009-193/154 dated October 24, 2014
•272
Renata Limited
Corporate Headquarters: Plot # 1, Milk Vita Road, Section-7, Mirpur, Dhaka-1216, Bangladesh, GPO Box No. 303
Phone: 8001450, 8001454 (PABX), Fax: 880-2-8001446, Website: www.renata-ltd.com
Find us on at http://www.facebook.com/renatalimited

Annual Report 15 16 PDF

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Annual Report 15 16 PDF

Uploaded by

Copyright:

Available Formats

PABX : 8001450-54

Dear Sir/Madam (s)

Md. Jubayer Alam

September 24, 2016

Agenda-4: To re-appoint the Managing Director.

Agenda-5: To re-appoint the Independent Director.

By Order of the Board

(Md. Jubayer Alam)

271 Corporate Directory

Marketing & Distribution Rights

1•renata annual report

The Corporate Family

Dr. Sarwar Ali is a freedom fighter. In 1971, he was

Between 1972 and 1987, Dr. Sarwar Ali was thrice

Dr. Sarwar Ali is the founder trustee of Liberation

Sarwar Ali joined largest music school of the

Dr. Sarwar Ali was elected member of National

Dr. Sarwar Ali joined Pfizer plant at Dhaka as part

Dr. Ali retired from the office of MD in 2002 after

More generally, globalization is an effective way of ensuring long-term success in 0.00%

7 •renata annual report

Kaiser Kabir, CEO & Managing Director

11 •renata annual report

Zahida Fizza Kabir, Director

Manzoor Hasan, OBE, Independent Director

13 •renata annual report

Tanya Tazeen Karim, Independent Director

THE AUDIT COMMITTEE

15 •renata annual report

General Manager, Manufacturing

Head of Marketing, Pharmaceutical

Head of Animal Health

Heads of Quality Assurance

Head of International Regulatory Affairs

Head of Human Resources Division

Head of International Business

Head of Information Technology

NEW PHARMACEUTICAL PRODUCTS

Sl. Brand Name Generic Division Developed by

CONTRIBUTION TO APPROPRIATION RECOMMENDED

19 •renata annual report

1.2 (ii) d) Independent Director is not a member, Director or officer of any √

1.2 (ii) e) Independent Director is not a shareholder, Director or officer of any √

1.2 (ii) f) Independent Director is not a partner or an executive or was not a √

1.2 (ii) g) Independent Director shall not be an Independent Director in more √

1.2 (iii) The Independent Director(s) shall be appointed by the Board of √

23 •renata annual report

1.3 (i) Independent Director shall be a knowledgeable individual with √

1.3 (ii) Independent Director should be a Business Leader/ Corporate √

1.4 Chairman and CEO shall be filled by different individuals. Chairman √

1.5 The Directors’ Report to Shareholders on:

1.5 (ii) Segment-wise or product-wise performance. √

1.5 (iii) Risks and concerns. √

1.5 (x) Remuneration to Directors including Independent Directors . √

1.5 (xiii) Appropriate accounting policies have been consistently applied in √

1.5 (xiv) International Accounting Standards (IAS)/ Bangladesh Accounting √

1.5 (xix) No Declaration of Dividend. Dividend

1.5(xxi) The pattern of shareholding shall be reported to disclose the

1.5 (xxi) a) Parent/Subsidiary/Associated Companies and other related parties √

1.5 (xxi) b) Directors, Chief Executive Officer, Company Secretary, Chief √

1.5 (xxi) c) Executives. √

1.5 (xxii) In case of the appointment/re-appointment of a Director the company √